Profit-taking on international markets in the week 11-15 January 2010 was substantial after a bullish start to the year.
Sales concerned all sectors and the banking sector in particular (with the European reference index down -3.7%) after the quarterly results of JPMorgan.
The auto sector contained its losses thanks to the upward trend of vehicle registration in the USA, Europe and Brazil (+50.7% yoy increase in vehicle registration in Brazil in the month of December; +11.4% yoy  increase in 2009). Shares in the tyre sector rose with Pirelli closing the week at 0.45€ +1.4% (+2.1 percentage points up on DJ Stoxx Auto & Parts).
During the week Kepler confirmed the positive outlook for Pirelli shares (Hold, Target Price €0.45) identifying as share catalyst the Pirelli’s commitment in Russia for the realisation of a new industrial district, the restocking  by dealers and a more efficient cost structure.  
The Italian real estate sector, and specifically Pirelli RE, showed a weak trend, down by 4.3% (-2.2% Aedes, -2.3% Brioschi, -1.6% Gabetti).

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Major world stock markets open 2010 with gains of over two percentage points in the first week of trading. Strong performance especially by banking stocks (+6.2% European Reference Index) and by the cyclical sector (+3.4% for auto parts, +4.0% for industrials and +7% basic resources).
Pirelli is among top gainers from the Milan Stock Exchange, ending the week with a gain of 5.4% at €0.443, significantly outperforming the sector index (+2 percentage points) and the  Italian blue-chip index (+3 percentage points). Centrobanca upgraded Pirelli this week and raised the target price from €0.47 to €0.49. The consensus target price for Pirelli settled at €0.48 by coverage made by 18 brokers; 71% BUY and 29% HOLD.
Pirelli RE ends the week with a +4.1% increase, outperforming the Italian real estate sector (Beni Stabili +2.6%, Risanamento -0.1% and Brioschi -3.7%).

For more in-depth information please follow the link to: Investors > Pirelli in the stock market > Peers & Markets; or click here.

International markets end week on a positive note, an average increase of 2 percentage points, particularly for the cyclical sector (+2.2% for Auto & Parts, + 2.8% for industrials and +6% basic resources).
Pirelli is among the top gainers from the Milan Stock Exchange, ending the week with a gain of 6% at €0.406, significantly outperforming the  Auto&Parts index and the Italian blue-chip index (+4%). The market reacted positively to the company’s quarterly results, particularly considering the positive outlook and the revised guidance the on the tyre business unit.
Following the quarterly results announcement, nine brokers (Banca Imi, Banca Leonardo, Centrobanca, Centrosim, Cheuvreux, Exan, Kepler, Mediobanca, Societè Generale) increased the rating on Pirelli stock (an average of +5% on the target price). The consensus forecast for Pirelli settles at €0.43; a “BUY” recommendation prevails on coverage made by 18 business banks.
Pirelli RE ends the week the with a 1.8% increase against the market trend, compared major securities from the Italian real estate sector.