Italian Stocks: Bulgari, Italcementi, Parmalat, Zignago Vetro

Italy’s benchmark FTSE MIB (FTSEMIB) Index declined for a second day this week, falling 75.41, or 0.4 percent, to 21,021.56 at the 5:30 p.m. close in Milan. The gauge increased 2 percent this week and 8.9 percent this month.

The following stocks were among the most active in the Italian market today.

Autogrill SpA (AGL) declined 14.5 cents, or 1.5 percent, to 9.5 euros, a fifth straight loss. The world’s biggest manager of airport and highway restaurants said in a statement that second-quarter net income fell to 32.6 million euros versus 38.1 million euros a year earlier.

Banca Generali SpA (BGN) rose 9.5 cents, or 1.1 percent, to 8.54 euros after saying profit in the first half almost doubled to 43.7 million euros from 23.9 million euros a year earlier as a jump in commissions more than offset a decline in lending income.

Bulgari SpA (BUL IM) sank 26.5 cents, or 4.2 percent, to 6.02 euros, taking this week’s loss to 7.3 euros. The world’s third-largest jeweler reported second-quarter profit that missed analysts’ estimates on declining sales in Europe, and confirmed its full-year revenue forecast of at least 5 percent growth.

“Even though management confirms its sales growth and EBIT guidance, we do not rule out that the market could be disappointed by the lack of good surprises,” Kepler Capital Markets said in a note.

Enel SpA (ENEL) rose for a second day, gaining 3.75 cents, or 1 percent, to 3.77 euros. Natixis Securities lifted its recommendation to “neutral” from “reduce,” on management confirming guidance on operating profit and debt reduction and because the “share price appears to have reached a floor.”

The country’s largest utility posted a 31 percent decline in first-half profit as a gain linked to the purchase of a stake in Spanish power company Endesa SA wasn’t repeated. Enel will meet its 2010 debt target and the initial public offering of its Green Power unit is still targeted for October, Chief Executive Officer Fulvio Conti said.

FastWeb SpA (FWB IM) lost 34 cents, or 2.8 percent, to 11.76 euros, a second consecutive decline. Deutsche Bank AG downgraded the telecommunications company to “hold” from “buy,” because of “disappointing results.”

Fastweb also had its recommendation cut to “reduce” from “hold” at Banca Akros.

Italcementi SpA (IT) , Italy’s biggest cement maker, sank 19.5 cents, or 3 percent, to 6.28 euros. Construction stocks were the worst performers in Europe today. Lafarge SA, the world’s biggest cement maker, said second-quarter profit fell 15 percent and pledged to extend costs cuts and asset sales to reduce its debt as it trimmed its forecast for demand in 2010.

Italcementi reported second-quarter net income of 37.9 million euros. The company didn’t provide a comparable figure for the year earlier period.

Mediaset SpA (MS) dropped for a third day, losing 7.25 cents, or 1.5 percent, to 4.93 euros. Prime Minister Silvio Berlusconi’s television broadcaster had its price estimate lowered to 4.9 euros from 5.1 euros at Natixis Securities, which reiterated a “reduce” rating.

Parmalat SpA (PLT) plummeted 6.3 cents, or 3.3 percent, to 1.86 euros, the biggest loss since May 7. Cheuvreux removed Italy’s biggest dairy food company from its “selected list” and downgraded the stock to “underperform.” The brokerage noted that “despite the better currency trend, the guidance is unchanged,” due to “risks in Italy and Venezuela.”

Telecom Italia SpA (TIT) declined 2.95 cents, or 2.9 percent, to 97.75 cents, snapping a four-day increase. Cheuvreux reiterated a “sell” recommendation on Italy’s biggest phone company and suggested “to short Telecom Italia compared with the European telecom index ahead of second-quarter results.”

“Telecom Italia’s strategy remains ineffective as it is hampered by the shareholding structure and debt burden,” the brokerage said in a note.

Zignago Vetro SpA (ZV) climbed 20.25 cents, or 4.9 percent, to 4.36 euros, the steepest increase since Dec. 11. Equita Sim SpA upgraded the specialist bottle maker to “buy” and added the stock to its “small cap portfolio.”

To contact the reporter on this story: Francesca Cinelli in Milan at fcinelli@bloomberg.net.

To contact the editor responsible for this story: David Merritt at dmerritt1@bloomberg.net.

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