Positive Outlook for Michelin: Buy Rating Driven by Market Recovery and Strong Financial Prospects

Analyst Michael Aspinall from Jefferies maintained a Buy rating on Compagnie Générale des Établissements Michelin (MGDDF – Research Report) and keeping the price target at €43.00.

Michael Aspinall has given his Buy rating due to a combination of factors related to the current market conditions and future prospects of Compagnie Générale des Établissements Michelin. The sentiment towards Michelin has shifted positively over the past 6-9 months, with investors showing agreement on potential catalysts such as the recovery of the specialty tyre market cycle. Although there is some uncertainty regarding the exact timing of this recovery, the consensus is that it is more a matter of ‘when’ rather than ‘if’.
Furthermore, the company is expected to maintain its targets for 2026, providing a catalyst for investor confidence. The anticipated improvement in the agricultural cycle, supported by positive market commentary and sentiment from peers like Deere and AGCO, suggests that Michelin is well-positioned for growth. Additionally, the company’s forecasted EBIT for 2026 exceeds consensus estimates, indicating strong financial performance expectations. These factors collectively contribute to the Buy rating by Aspinall.