Michelin: a best pick for Oddo; targets 135 euros
(CercleFinance.com) - Broker Oddo confirms its buy rating on the Michelin share, maintaining its target price of 135 euros after the group's recent investors day.
It says that Michelin remains one of its best picks (Oddo Large Cap Convictions) as it remains convinced that the share stands out greatly in the automotive sector and that its strengths are not yet fully priced in.
Oddo points out that the group has confirmed the financial details of its 2020 plan. The group still expects EBIT of about 3,700 million euros, before FX factors, with FCF of over 1,700 million euros in 2020, which are both broadly in line with the broker's expectations.
The broker says that it found management's responses to the key themes of the equity story convincing, namely the group's competitiveness, its growth prospects, its technological leadership and even the transformation of its profile, which it has accelerated through recent M&A.
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.
It says that Michelin remains one of its best picks (Oddo Large Cap Convictions) as it remains convinced that the share stands out greatly in the automotive sector and that its strengths are not yet fully priced in.
Oddo points out that the group has confirmed the financial details of its 2020 plan. The group still expects EBIT of about 3,700 million euros, before FX factors, with FCF of over 1,700 million euros in 2020, which are both broadly in line with the broker's expectations.
The broker says that it found management's responses to the key themes of the equity story convincing, namely the group's competitiveness, its growth prospects, its technological leadership and even the transformation of its profile, which it has accelerated through recent M&A.
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.