Analysts: Few reasons to buy Michelin stock
In light of only “modest” improvements on second half EBIT predictions and a “rather low quality free cash flow”, financial analysts are not optimistic about Michelin’s ability to sustain it share price.
In an investor’s report published 13 February, Morgan Stanley reported that Michelin’s 974 million euros of pre-tax profits (EBIT) in the period may have been 5 per cent above consensus expectations, but it was driven by gains in the mining tyres business.