Michelin: Barclays downgrades stock
(CercleFinance.com) - Barclays said on Wednesday that it is downgrading its recommendation on the share of Michelin Group to "equal weight" (a "neutral" rating).
"While still offering a relative defensive profile within the European tyre space and decent visibility on its FCF generation, we struggle to find new positive short-term catalysts to continue to support our OW rating. We also feel that its current valuation already captures a significant portion of our above-consensus expectations for 2021," the broker says.
However, Barclays has raised its target price on the share from 90 euros to 105 euros (current price 94 euros, -3.5%).
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"While still offering a relative defensive profile within the European tyre space and decent visibility on its FCF generation, we struggle to find new positive short-term catalysts to continue to support our OW rating. We also feel that its current valuation already captures a significant portion of our above-consensus expectations for 2021," the broker says.
However, Barclays has raised its target price on the share from 90 euros to 105 euros (current price 94 euros, -3.5%).
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.