A bad week for European stock markets (-4.9% Milan, -2.5% London, -3.1% Frankfurt, -4.7% Paris), burdened by fears of the high indebtedness of Spain, Greece and Portugal, and about the strength of the euro.
Sales mainly involved the banking sector (-6.4% the European reference index), the auto& parts sector (-4.5%) and the construction industry (-4.3%).
Pirelli closed the week at € 0.391, a fall of 7.6%. Its peers also closed down, with Continental falling by 6% and Micheln and Nokian by 5%. During the week, Kepler upgraded its recommendation for Pirelli &C from Hold to Buy, with target prices increasing from € 0.45 to € 0.47. The upside is driven by the reduction in the weight of holding costs on NAV, in the light of the company’s declared commitment to the process of focussing on its industrial activities, and the positive expectations for its tyre business in 1H 2010. The Consensus Target price is € 0.486 on coverage of 18 brokers, 76%  BUY, 24% Hold.
Pirelli RE closed 7.7% down.

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).

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

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.