Michelin: Invest Securities reduces target price
(CercleFinance.com) - While maintaining its "neutral" rating on Michelin shares, Invest Securities has reduced its target price for them from 126 euros to 118 euros, after the company posted guidance for 2023 that was below its expectations and which are rather vague after 2023, despite a detailed and aggressive speech.
The unpleasant surprise comes from SR3's EBITA margin targets of only 17%, while the historical record is 26% in 2012, admittedly, in a modified scope, the analyst said after the tyre maker's strategic presentation.
The group's 2023 EBITA target of 3.3 billion euros suggests that the "post-covid" catch-up would only be complete in 2025, Invest Securities continues, which has cut its EPS estimates, although has with higher dividend expectations.
Seemingly talk of the town on Friday morning, the share is currently down almost 1% at 125 euros, in a market that is up slightly.
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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.
The unpleasant surprise comes from SR3's EBITA margin targets of only 17%, while the historical record is 26% in 2012, admittedly, in a modified scope, the analyst said after the tyre maker's strategic presentation.
The group's 2023 EBITA target of 3.3 billion euros suggests that the "post-covid" catch-up would only be complete in 2025, Invest Securities continues, which has cut its EPS estimates, although has with higher dividend expectations.
Seemingly talk of the town on Friday morning, the share is currently down almost 1% at 125 euros, in a market that is up slightly.
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.