(Boursier.com) — Michelin camped on 30 euros in Paris this Friday, which corresponds to a gain of 16% since the beginning of the year. Morgan Stanley has just adjusted its target on the file from 34 to 35 euros with an opinion to ‘overweight’. More cautious, RBC had previously lowered its recommendation to ‘sector performance’ with a course of 28 euros in the viewfinder. The broker was cautious on car manufacturers and tire manufacturers in 2023, favoring Ferrari and trucks within the European automotive sector. He sees price normalization for automakers occurring in the second half of 2023 and says he is “increasingly cautious in a slowing tire replacement market.”
At the end of last year, the group had revised down its forecast for structural free cash flow in 2022 and postponed its investor day due to inflation uncertainties preventing it from releasing forecasts for 2023. The event, originally scheduled for November 29, will be held in the spring of 2023…
The company will previously release its first guidance for 2023 in mid-February when releasing the 2022 annual results.
Michelin had reduced its structural free cash flow forecast for 2022 to 700 million euros, against 1.2 billion euros previously, mainly due to inflation. Management had nevertheless confirmed its guidance for operating profit for the 2022 sectors above €3.2 billion (at constant parity).
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