July was not a lucky month for Brembo, the Bergamo company of luxury brakes. Bombassei's group secured the crown for the biggest decline of the month, with an average loss of 9,42%.
Brembo stock had grown too much in recent weeks. After the good results oflast quarterly, released last Friday, with a profit increase of 36,2% beyond analysts' expectations, the title is coming back down. In fact, the earnings estimates for the full year have not been revised. Between the expansion in South America and the announced investments of 100 million euros, the excitement that had struck the Bergamo-based company has faded. Growth expectations for the second semester they are much more moderate than those that characterized the beginning of the year.
August also did not start well for Brembo which is losing more than 7% today. (7,15% at 16.00)
Mediobanca confirms its underperform judgment and adds that the price at which the stock is trading incorporates a much higher premium than its competitors.
