Michelin: Bryan Garnier raises target price

(CercleFinance.com) - Bryan Garnier has reiterated its "buy" rating on the Michelin share and has raises its fair value from 136 euros to 141 euros, the day after the announcement of an agreement for a joint venture with Sumitomo in the United States.


The broker points out that this joint venture between their respective tyre distribution and related services businesses in North America would create the second largest player in the wholesale tyre market in this geographic area.

The broker estimates that this transaction, once approved, could enhance the group's EPS by 3% to 4% in 2018, and that this change in scope has not yet been integrated in its model.

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