ML: Share Price Will Recover As Profit Margins Stabilize Over Time

The analyst price target for Compagnie Générale des Établissements Michelin Société en commandite par actions has decreased slightly. Recent adjustments reflect a shift from approximately €31.44 to €31.60, as analysts cite tempered profit margin forecasts despite more optimistic revenue growth expectations.

Analyst Commentary

Recent research updates on Compagnie Générale des Établissements Michelin Société en commandite par actions indicate nuanced perspectives from the analyst community regarding the company's short- to medium-term outlook. While there is consensus on downward revisions for the price target, analysts diverge in their emphasis on positives and ongoing concerns.

• Bullish analysts continue to see upside in Michelin shares, maintaining Buy or Overweight ratings even as they revise price targets lower.
• Expectations for stable or improved revenue growth contribute to positive outlooks, suggesting that demand fundamentals remain intact.
• Some analysts believe Michelin's strategic initiatives and market positioning will enable it to navigate challenges and deliver operational resilience.

• Bearish analysts are concerned about Michelin's profit margin outlook, prompting reductions in price targets to reflect tempered earnings expectations.
• Uncertainties in cost management and the macroeconomic environment are highlighted as key factors limiting near-term valuation upside.
• While the long-term outlook remains constructive for some, short-term execution risks and subdued margin guidance are prompting more cautious stances.

Valuation Changes

• The consensus analyst price target has risen slightly from €31.44 to €31.60.
• The discount rate has declined modestly from 8.80% to 8.65%.
• The revenue growth projection has increased from 2.26% to 2.55%.
• The net profit margin estimate has decreased marginally from 9.24% to 9.08%.
• The future P/E ratio has edged up from 10.80x to 10.91x.