Michelin: Oddo maintains buy rating, reduces target price
(CercleFinance.com) - Oddo BHF maintains its buy rating on Michelin shares, while reducing its target price for them from 40 euros to 35 euros, in its comments on the European automotive sector, in which it believes that uncertainty will result in quality stocks returning to the forefront.
The analyst says that the coming earnings season should not end the debate on the sector's prospects in the face of valuations that now seem to incorporate a deep recession next year, the analyst says, who has adopted a more cautious approach to 2023.
Oddo nevertheless says that investors should return to higher "quality" profiles, which have been unfairly punished YTD and which are much better placed to resist a deterioration in market conditions: i.e. Stellantis, Mercedes-Benz, Ferrari, Michelin and CIE.
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