(News Bulletin 247) – While deeming the valuation attractive, Jefferies is downgrading its recommendation on Michelin from ‘buy’ to ‘hold’, with a price target lowered from 34 to 28 euros, i.e. an upside potential of 6% for the title of the tire engineer.
“We believe Michelin’s target market will continue to underperform, which could lead to under-absorption of fixed costs,” says the broker, which cuts its 2023-25 estimates by 3-6% and ranks 2-5 % below consensus.
“If we add to that the management’s inflated ambitions in terms of external growth, we have difficulty seeing the title outperform in the short term,” adds Jefferies, who therefore prefers the automotive suppliers Forvia and Valeo to Michelin.
Copyright (c) 2023 News Bulletin 247. All rights reserved.
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
