Michelin: Oddo remains a buyer before sales figures

(CercleFinance.com) - Oddo has confirmed its Buy rating on the Michelin stock, along with its target price of 155 euros before the group publishes its Q1 2018 sales after trading on 23 April 2018.


The broker expects sales to fall by 7.6% to 5,145 million euros.

Oddo is reducing its current operating income estimate by 3.8% to 2,710 million euros. This reduction cuts EPS by 4.3%, although not on the group's guidance, which considers constant exchange rates. The broker's estimates for reported operating profit (2,610 million euros) for 2018 and the next years include restructuring costs of 100 million euros per year, Oddo adds.

Oddo points out that these estimates do not include the acquisition of Fenner, which should be finalised at the end of Q2 2018. The broker's analysts estimate that in the second half of 2018, Fenner's contribution to sales should amount to about 400 million euros, with a 40 million euro contribution to operating profit.


Copyright (c) 2018 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.