Michelin: Bryan Garnier still a buyer; adjusts target price
(CercleFinance.com) - While trimming fair value for the share from 141 euros to 139 euros, to reflect the strength of the dollar, Bryan Garnier maintains a "buy" rating on Michelin after the group's publication of a record 2017 operating profit and EPS.
Volumes have been solid, as have the price effects, enabling the tyre maker to generate a significant free cash flow and boost its dividend (+9%), the broker points out.
Although 2018 earnings will again be affected by the strength of the dollar, Bryan Garnier thinks that Michelin should easily be able to easily report a 6% increase in its operating profit (excluding integration agreement with Sumitomo).
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