Michelin shares posted the second biggest drop in the CAC 40 index on Tuesday morning on the Paris Bourse, following an analysts' conference at which the tire maker was cautious about sales volumes.

At around 10:00 a.m., the manufacturer's share price was down by around 3.5%, while the CAC was down by around 0.7% at the same time.

At its pre-close call with analysts last night - a telephone exchange to mark the end of the first half - the Clermont-Ferrand-based group confirmed its annual targets.

During the call, however, Michelin reported weaker-than-expected momentum in volumes, which could end up declining more sharply this year than the 0% to 2% drop initially anticipated.

As Michelin seeks to focus on the most profitable segments of the market, the tire maker expects the volume effect to be more penalizing than expected in the second quarter, but also for the year as a whole", Stifel's analysts point out.

The research firm nevertheless notes that the Group is more optimistic about its price/mix component, which is considered more favorable than expected, both for replacement and original equipment tires.

Following these comments, Deutsche Bank's teams indicate that they have lowered their forecasts for 2024, while retaining their Buy recommendation on the stock, with a price target of 40 euros.

Oddo BHF's analysts explain that they have adjusted their estimate of the decline in volumes to -3% for this year, which is below Michelin's message of -2%.

Although the share price could fall today in view of the slight revision of expectations, and after the very good performance since the start of the year (+11% vs. 0% for the STOXX Europe 600 Automobiles & Parts), our positive conviction remains unchanged", they stress.

The disappointment on volumes should not mask the fact that it also reflects an increasingly assertive strategy of focusing on value at the expense of volumes", they add.

For Oddo, this strategy seems much more promising, as reflected in the targets communicated at the last investor day held at the end of May, which leads it to consider the tire maker as one of its favorite stocks in the sector.

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