Michelin: Invest Securities raises target price.

(CercleFinance.com) - Invest Securities has upped its target price on Michelin from 106 euros to 110 euros, while maintaining its "neutral" rating on the stock, following the announcement of a sharp rise in Q1 sales, which exceeded expectations.


However, "strong growth, which is related to an expectation of forthcoming price increases, is only temporary and should not enable margins to improve beyond the targets already announced in February 2016," said the broker, according to which "the growth profile of 2017 is being confirmed, which includes strong sales growth in H1, followed by the group's margins catching up in H2.

However, its guidance for 2017 remains unchanged, while after this publication Invest Securities raised its 2017 sales forecast to 22 billion euros (+5.4%, vs. +3.7% previously). Meanwhile, EBITDA is expected to reach 2.9 billion euros, or + 7%, in line with a guidance of slight growth in 2017, after a first half-year that expected to be more difficult.


Copyright (c) 2017 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.