Michelin: rising after the results, and comments

The title Michelin (PA:MICP) showed a net increase on Tuesday in Paris, gaining more than 2.5%, the day after the publication of half-year results solid and after positive comments from analysts.

Group operating income on ordinary activities amounted to 1 327 million euros, up by 11% at constant exchange rates. The net result is established on the profit of 917 million euros, an increase of 6%.

Bryan Garnier has this morning reiterated its recommendation to ‘buy’ and its intrinsic value (‘fair value’) of € 146 on Michelin, holding that the risk-return ratio seems rather attractive to the current market price.

‘Michelin has unveiled yesterday evening, a performance in line with market expectations, despite a strong headwind from foreign exchange. As expected the organic growth in sales and operating profit came effect price mix and activity specialities’, noted the broker.

‘The acquisition of Fenner Plc and Camso will amplify the leverage from the S2 2018 and a full year on 2019. We raise our estimates 2018/19/20th with a target of EBITA group 2020 of 3 765mE, above the guidance held at 3 500TH despite the raising of the objectives of CLF to 1 600mE vs 1 400mE’, indicated this morning, for its part, Invest Securities.

Invest Securities has also raised its price target on the title, which passes from 106 to 114 euros.

Oddo BHF has, finally, maintained its recommendation to Purchase, with a target price to 155 euros, considering that for the giant tyre, ‘the road is now clear’.

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