Michelin: JPMorgan downgrades stock
(CercleFinance.com) - On Monday JPMorgan downgraded Michelin shares from "overweight" to "neutral", due to a limited upside potential relative to other sector stocks.
In a report on European automotive stocks, the analyst believes that the manufacturer's upside potential is lower than that of other equipment manufacturers, such as Valeo and Faurecia.
While it appreciates the tyre manufacturer's sound price control, which enables it to offset the rise in raw material costs, JPMorgan believes that component suppliers are now better positioned to benefit from the recovery in automobile production.
As a result it has reduced its target price for the share from 150 euros to 140 euros.
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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.
In a report on European automotive stocks, the analyst believes that the manufacturer's upside potential is lower than that of other equipment manufacturers, such as Valeo and Faurecia.
While it appreciates the tyre manufacturer's sound price control, which enables it to offset the rise in raw material costs, JPMorgan believes that component suppliers are now better positioned to benefit from the recovery in automobile production.
As a result it has reduced its target price for the share from 150 euros to 140 euros.
Copyright (c) 2022 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.