Michelin: Stifel reduces target price
(CercleFinance.com) - Stifel maintains its "hold" rating on Michelin shares, while trimming its target price for them from 28 euros to 26.
5 euros, following a 9% average reduction in its 2022-24 EPS sequence for the French tyre maker.
Specifically for 2023, the broker expects a 2.7% decline in volumes (-1.4% for consensus), with segment operating income down to 2.97 billion euros (11% below consensus) and a compressed margin of 10.2%.
Analysts say that "Michelin's equity story is currently clouded by uncertainties regarding capital allocation, rising recessionary risks, and to a certain extent by what we see as too-high expectations in 2023".
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