Michelin: Oddo BHF says profit warning is unlikely
(CercleFinance.com) - Oddo BHF has reiterated its "buy" rating on the Michelin stock, along with its target price of 135 euros, saying that its new forecasts underpin its assumption that a profit warning is unlikely when the tyre maker unveils its quarterly results, despite a poor scenario for volumes.
According to the broker, Michelin still stands out in the sector, thanks to higher visibility and even earnings growth of 9% p.a. in 2019/20, with FCF generation that has improved again, which was recently confirmed by management.
These points, as well as the potential for cost reduction, do not, in the broker's opinion, seem to be reflected in the share's valuation, which it considers very attractive after the recent decline in the sector, says the analyst who monitors the share.
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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.
According to the broker, Michelin still stands out in the sector, thanks to higher visibility and even earnings growth of 9% p.a. in 2019/20, with FCF generation that has improved again, which was recently confirmed by management.
These points, as well as the potential for cost reduction, do not, in the broker's opinion, seem to be reflected in the share's valuation, which it considers very attractive after the recent decline in the sector, says the analyst who monitors the share.
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.