Michelin: Oddo BHF still a buyer after 2019 results
(CercleFinance.com) - An analyst at Oddo BHF this morning confirmed his "buy" rating on the Michelin share, saying that the tyre group's caution should not overshadow the group's strengths.
The broker says that Michelin has published solid 2019 results, which included EBIT above estimates and FCF that exceeded them. However, its 2020 guidance and the relatively cautious message from management (as is often the case) have tarnished this publication and could weigh on the share price today. However, the weakness of future adjustments to the consensus (up to 3% or 4%) reminds it of Michelin's resilience in a market context that remains difficult, along with its differentiating profile within the tyre segment, and more broadly, the automotive sector as a whole.
Oddo BHF therefore confirms its target price of 125 euros for the share, which means upside potential of 17%.
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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.
The broker says that Michelin has published solid 2019 results, which included EBIT above estimates and FCF that exceeded them. However, its 2020 guidance and the relatively cautious message from management (as is often the case) have tarnished this publication and could weigh on the share price today. However, the weakness of future adjustments to the consensus (up to 3% or 4%) reminds it of Michelin's resilience in a market context that remains difficult, along with its differentiating profile within the tyre segment, and more broadly, the automotive sector as a whole.
Oddo BHF therefore confirms its target price of 125 euros for the share, which means upside potential of 17%.
Copyright (c) 2020 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.