Michelin: UBS' favourite tyre maker; buy rating maintained
(CercleFinance.com) - Today UBS is maintaining its "buy" recommendation on the share of French tyre maker Michelin, with its recent CMD having enabled the group to provide forecasts in line with the analyst's expectations, for whom the stock remains his best pick in the sector.
"We believe that Michelin's competitive advantage comes from the strength of the brand, better technical characteristics than competing products and efficient distribution," says UBS. Also remembering that the integration of recent acquisitions was "better than expected", and although the volume growth in the first quarter should be slightly hampered by logistics problems, the analyst believes that Michelin should continue to see "healthy growth".
UBS has therefore confirmed its target price of 124 euros, appreciating both its "attractive valuation," with the group presenting just "limited" risks.
Copyright (c) 2019 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.
"We believe that Michelin's competitive advantage comes from the strength of the brand, better technical characteristics than competing products and efficient distribution," says UBS. Also remembering that the integration of recent acquisitions was "better than expected", and although the volume growth in the first quarter should be slightly hampered by logistics problems, the analyst believes that Michelin should continue to see "healthy growth".
UBS has therefore confirmed its target price of 124 euros, appreciating both its "attractive valuation," with the group presenting just "limited" risks.
Copyright (c) 2019 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.