The tiremaker reported revenue of €19.2bn for the first nine months of the year, up 1% at constant exchange rates and 0.1% on a like-for-like basis and at constant exchange rates. Activity accelerated in the third quarter alone.

Since the beginning of the year, performance reflects a 0.8% decline in tire volumes, mainly due to weak original-equipment sales. It also reflects a positive price-mix effect of 1.1%, including a 1.6% mix effect driven by the move upmarket and the Michelin brand. Finally, the scope effect contributed 0.9% following the consolidation of Cooley Group, Flexitallic and TecTech, while currency effects weighed by 1.6% due to the depreciation of the U.S. dollar in the first half.

Michelin confirmed its full-year targets and is aiming for growth in operating income from the sectors at constant exchange rates and scope compared with 2025, as well as free cash flow before M&A transactions of more than €1.6bn.

Jefferies and Citi remain bullish

According to Jefferies, revenue rose 3.9%, compared with consensus of 4.9%, with the gap attributable to volumes. Analysts believe the quarterly release was slightly negative, with weaker volumes, but they also consider current expectations too low. The buy recommendation remains unchanged, with a price target of €40, representing 20% upside.

At Citi, analysts described the third quarter as below expectations, also due to weaker volumes, and noted that they had already expected the group to confirm its full-year targets. For Citi, the main issue was volumes and Michelin's ability, for the first time in years, to report a positive contribution from all components of the change in revenue. The firm's rating on the stock is also buy, with a price target of €39.