(CercleFinance.com) – Stifel maintains its ‘hold’ recommendation on Michelin with a price target lowered from 28 to 26.5 euros, in the wake of an average 9% reduction in its 2022-24 EPS sequence for the French tire manufacturer.
In particular for 2023, the broker expects a decline of 2.7% in volumes (-1.4% in consensus), an operating result of the segments down to 2.97 billion euros (i.e. 11% less than the consensus) and a compressed margin of 10.2%.
“The Michelin case is currently clouded by uncertainties around capital allocation, growing recession risks, and to some extent by what we see as overly high expectations in 2023,” he said.
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