Michelin: Stifel still on hold, raises TP

(CercleFinance.com) - Stifel maintains its "hold" rating on Michelin shares, while increasing its target price for them from 26.
5 euros to 30.5 euros.

The broker has raised its 2022/2024 EPS guidance by an average of 6%.

Stifel models 2022 earnings at record levels, despite deteriorating volumes in Q4 2022 (-6%/-7%).

2023 earnings may lack momentum (at best stagnant), although FCF should recover to more normative levels as WCR volatility dissipates (analysts model E1.8bn, on average, through 2025), the analyst concludes.


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