Michelin: further rebound, Jefferies raises its recommendation

(CercleFinance.com) - The stock ended the day with a gain of close to 1% (after having gained nearly 5% yesterday) as Jefferies announced today that it had upgraded its opinion on Michelin from 'underperform' to 'hold', with a price target revised upwards from 30 to 34 euros.


The American broker - who praised the 'quality' first-half results published by the manufacturer - believes that the French group, like all the world's major tire manufacturers, has several levers at its disposal to improve its results.

These include factors such as price control, product mix, cost trends and control of its industrial footprint.

On this last point, Jefferies considers that Michelin is in a position to increase its capacity utilization rate from 73% in 2023 to over 82% by 2026, a level which it believes could be far from a ceiling.

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