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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