Oddo BHF maintains its 'outperform' rating on Michelin shares, with a slightly higher target price, from 35 to 36 euros.

The analyst reports that Michelin released December tire market data last night, which were in line with October/November.

While we have adjusted our 2023 adjusted EBIT estimate very slightly downwards (-1%, 3,376 ME), the bulk of the EPS revisions stem from restructuring charges (~800 ME est.) in the face of plans to close plants in Germany and the United States announced at the end of 2023', says Oddo BHF.

The broker nevertheless adds that Michelin remains one of his favorite stocks, with a profile that is still considered more defensive and offers greater visibility within the sector.

Beyond that, the stock is not lacking in assets, with a rebound in volumes in sight, a still solid price/mix and a best-in-class financial situation (FCF, balance sheet)", concludes the research firm.

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