Michelin: Invest Securities cuts target price

(CercleFinance.com) - In its comments this morning, Invest Securities says that pressure has increased on Michelin's earnings.

Following the group's announcement after trading yesterday of a 6.3% drop in Q1 sales, in addition to declining volumes, the broker has reduced its target price for the share from 117 euros to 105 euros, while confirming its "sell" rating.

The group invokes a catchup in volume growth in the second half, although anticipates an increase in raw material prices and a 50 million euro negative currency impact on Ebita in 2018, Invest Securities says, which has also cut its 2018-20 EPS estimates by -5.5%, -4.8% and -4.6% respectively.

The analyst monitoring the stock says that the broker maintains a "sell" rating, in the run-up to interim earnings that could disappoint.



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