Italian Stocks: Autogrill, Bulgari, DMT, Fiat, Parmalat, Safilo Group Move
Italy’s benchmark FTSE MIB Index rose for a second day, gaining 190.64, or 0.9 percent, to 21,616.43 at the 5:30 p.m. close in Milan.
The following stocks were among the most active in the Italian market today.
Autogrill SpA (AGL IM) advanced 2.8 percent to 9.31 euros, ending two days of declines. Fidentiis Equities SV SA reiterated a “buy” rating on the world’s biggest manager of airport and highway restaurants, citing an improvement in U.S. airlines passenger revenue last month compared with August. The brokerage said it considers “the stock to be very attractive.”
Bulgari SpA (BUL IM), the world’s third-largest jeweler, advanced 5.5 percent to 7.70 euros, extending gains of 3.8 percent yesterday. Swiss watch exports rose 26 percent in September, the Federal Customs Offices said today.
Dada SpA (DA IM) surged 6 percent to 5.33 euros, the highest in more than seven months, after the company’s board agreed to provide information on the group as part of a review of potential disposal options.
“In our view, the disposal is the most likely scenario,” Equita Sim SpA said in a note, adding that “a possible disposal would imply a tender offer on the remaining stake of Dada.” The brokerage has a “hold” rating on the Internet and mobile-phone company controlled by RCS MediaGroup SpA.
Davide Campari-Milano SpA (CPR IM) gained 2.2 percent to 4.45 euros as food and beverage shares rose across Europe today after Pernod-Ricard SA reported first-quarter sales growth that beat estimates.
Parmalat SpA (PLT IM), Italy’s biggest dairy company, increased for the first day in five, rising 1.4 percent to 1.96 euros.
Digital Multimedia Technologies SpA (DMT IM) soared 7.9 percent to 14.29 euros, the biggest gain since May 10. Equita Sim SpA said in a note that “Telecom Italia will invest in mobile broadband,” providing DMT with a “potential driver.” The brokerage reiterated a “buy” rating on the stock.
Fiat SpA (F IM) jumped 4.4 percent to 12.24 euros after the carmaker said third-quarter net income rose to 170 million euros ($237.4 million) from 21 million euros a year earlier. That compares with the 42 million-euro average estimate of 11 analysts surveyed by Bloomberg.
Fiat raised its profit and sales targets for 2010, according to a statement. The company expects 2010 trading profit, measured by earnings before interest, taxes and one-time gains or costs, of at least 2 billion euros.
“We are increasingly confident that Fiat Industrial has a bright future ahead of it while Auto looks to remain viable thanks to Brazil and probably Chrysler,” Sanford C. Bernstein & Co. wrote in a note. Exor SpA (EXO IM), Fiat’s main shareholder, increased 3.4 percent to 18.05 euros.
Gruppo Editoriale L’Espresso SpA (ES IM) gained for a second day, climbing 5.7 percent to 1.84 euros. Exane BNP Paribas lifted its price estimate on the publisher to 2.30 euros from 2.10 euros with an “outperform” rating unchanged, saying in a note that the “stock could be supported by upgrades of consensus estimates, the possibility of delivering growth in 2011 thanks to an increase in the cover price of la Repubblica and the last effects of cost cutting.”
Pirelli Real Estate SpA (PRS IM) dropped 3.3 percent to 39.8 euro cents. The company will change its name to Prelios SpA on Oct. 25, when Pirelli & C. SpA will assign its stake to shareholders at a one-to-one ratio.
“We think Pirelli RE is a risky bet ahead of the spinoff due to a flowback risk,” Intermonte Sim SpA said in a note. “We think once the volatility settles after the spinoff, the future Prelios will be in a much sounder position.”
Safilo Group SpA (SFL IM) snapped two days of declines, rising 5 percent to 11.17 euros. CA Cheuvreux SA reiterated an “outperform” rating on the world’s second-largest maker of glasses. The brokerage expects third-quarter results, due on Nov. 5, to be “good in terms of sales and Ebitda margin.”
Snam Rete Gas SpA (SRG IM) advanced 1.9 percent to 3.80 euros as Societe Generale SA reinitiated coverage of the owner of Italy’s natural-gas grid with a “buy” rating.
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