Michelin: Invest Securities upgrades 'sell' rating
(CercleFinance.com) - Invest Securities has upgraded its rating on Michelin from "sell" to "neutral," nudging up its target price for the share from 105 euros to 106 euros, after the French tyre giant announced its acquisition of the Canadian group Camso.
It underlines that this deal strengthens Michelin's SR3 division, which is the most profitable, with the deployment of an "Out of the Road" business, which has been built as a department combining - together with Michelin's assets - a package generating annual revenues of over two billion euros.
With the announced synergies and the recovery of those coming from Fenner Plc, the broker's analysts have raised their 2019-20 EPS estimates by +5%. In all, the impact of Camso should ultimately be more beneficial than that of Fenner Plc, they said.
Copyright (c) 2018 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.
It underlines that this deal strengthens Michelin's SR3 division, which is the most profitable, with the deployment of an "Out of the Road" business, which has been built as a department combining - together with Michelin's assets - a package generating annual revenues of over two billion euros.
With the announced synergies and the recovery of those coming from Fenner Plc, the broker's analysts have raised their 2019-20 EPS estimates by +5%. In all, the impact of Camso should ultimately be more beneficial than that of Fenner Plc, they said.
Copyright (c) 2018 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.