Michelin: Jefferies upgrades 'underperform' rating.
(CercleFinance.com) - Broker Jefferies has upgraded its rating on Michelin from "underperform" to "hold," and has raised its target price from 101 euros to 115 euros, particularly highlighting a drop in raw material prices for the tyre maker.
The broker sees a limited potential in its 2018 estimates, given increasing headwinds in exchange rate fluctuations and less support in volumes from the SR3 segment (specialty tires).
“However, with valuation not demanding and potential for margin improvement from self-help, Michelin has emerged as one of the more attractive re-rating stories in the sector,” the broker said.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker sees a limited potential in its 2018 estimates, given increasing headwinds in exchange rate fluctuations and less support in volumes from the SR3 segment (specialty tires).
“However, with valuation not demanding and potential for margin improvement from self-help, Michelin has emerged as one of the more attractive re-rating stories in the sector,” the broker said.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.