Positive morning for the European markets awaiting the reopening of Wall Street after the stop imposed by Sandy. In Piazza Affari at the end of the morning, the FtseMib index rose by 0,99%, to 15.675. The other Stock Exchanges were positive, but less brilliant: Paris +0,3%, Frankfurt +0,64%. London is down by 0,11%.
The 10-year BTP it is trading at a yield of 4,94%, spread at 344, down 5 basis points.
The rise is spread across all blue chips, with a few exceptions, starting with Fiat (-4,02%). This morning, as expected, many analysts lowered their target prices, because they weren't convinced by the new industrial plan presented yesterday by the CEO, Sergio Marchionne.
In particular, Mediobanca lowered the recommendation to neutral from outperform, target price 4,7 euro. Bank of America confirmed the negative underperform opinion and cut the target price to 2,45 euro from 3 euro. Morgan Stanley confirmed underweight and cut the target to 3,5 euros from 3,9 euros.
Credit Suisse he acknowledges that the Ebit for the third quarter went beyond expectations, but also "the risks in the balance sheet have risen" starting from the increase in the year-end debt projections (from 5,5 to 6,5 billion). Thus, the Bank judges the Lingotto underperform with a target price of 4 euros. Even the experts of Citi recommend selling the shares, estimating a target price of 3 euros." 'Considering the debt of 6,7 billion, or 5 euros for each share, the Lingotto shares are not cheap at all" reads the comment on the US bank. The experts of Santander they write: “We are concerned about Fiat's prospects and see no reason to hold Fiat shares”.
More music for Fiat Industrial (+ 3,39%), which in the quarter recorded an increase in net profit of 45,6%, to 297 million, on revenues up 7,9%, to over 6,31 billion. “The continued strong growth of the Agricultural Machinery business – underlines a note from Lingotto – has more than compensated for the weaker market conditions in the other businesses”.
The Europe dossier foresees today a conference call between the finance ministers of the euro area to examine the progress of the negotiations on the revision of the Greek bailout plan. The Greek government presented the budget law this morning: Greek GDP is expected to contract by 4,5% next year for the sixth consecutive year, against the -3,8% estimated by the Government on October 6,5st (-9,4% this year). The public deficit should reach 2013 billion in 5,2, equal to 189,1% of GDP, while the public debt should explode up to 175,6% of GDP (XNUMX% this year).
But the real tug of war will come next week, when the reform of the labor market will be submitted to Parliament. The Democratic Left, a party in the coalition that supports the government, has already expressed its opposition, despite the appeal of Prime Minister Antonis Samaras to guarantee the approval of the package.
Returning to Piazza Affari, Prysmian rises by 2,48%: the company has been awarded a new contract worth around 400 million euro as part of the project which envisages a very high voltage submarine electricity connection (500 kv dc) between Montenegro and Italy, through the Adriatic.
The rise also involves the financial sector, starting from Mediolanum, which gains 1,75% after the Bank of America promotion, which confirmed the buy opinion and raised the target price to 4,8 euro from 4,3 euro. Also Generali scores a leap of 1,69%.
Among the banks, Unicredit earn 0,29%, Banco Popular +0,81%. Weak MontePaschi, -0,64%. Telecom Italy advance 2%. The utilities are positive: A2A 0,75% salt, Atlantia + 1,51% Enel + 0,9% Enel Green Power +1,38% and Snam + 1,17%.
