Michelin: Barclays upgrades stock
(CercleFinance.com) - On Friday Barclays upgraded its rating on the Michelin stock to "overweight" from "equal weight", having increased its corresponding target price from 105 euros to 145 euros, ahead of its CMD that the tyre manufacturer will hold next month.
In a report about the automotive sector, the broker explains that it has revised its investment theory concerning sector specialists.
"While we believe we are entering a multi-year recovery that should drive earnings/cash much higher in the next two to three years, it now appears to us that there is not much fuel left in the tank to make the subsector attractive at current levels", Barclays said.
However, the broker says that it sees the possibility of a catch-up effect that could lead to an increase in the multiples of OEMs, such as Michelin.
The share is up over 1% late on Friday morning in a market that is down about 0.5%.
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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.
In a report about the automotive sector, the broker explains that it has revised its investment theory concerning sector specialists.
"While we believe we are entering a multi-year recovery that should drive earnings/cash much higher in the next two to three years, it now appears to us that there is not much fuel left in the tank to make the subsector attractive at current levels", Barclays said.
However, the broker says that it sees the possibility of a catch-up effect that could lead to an increase in the multiples of OEMs, such as Michelin.
The share is up over 1% late on Friday morning in a market that is down about 0.5%.
Copyright (c) 2021 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.