The stock ended the day with a gain of nearly 6% following the announcement of annual sales figures and positive analyses.

Stifel confirmed its 'hold' recommendation on Michelin and raised its target price from €33.5 to €35.5, in the wake of an adjustment to its EPS sequence to 2025 of 5.5% on average for the tire maker.

"Adjusted EBIT for 2023 beat minimized expectations by 4%, thanks to favorable cost winds, while free cash flow did not disappoint", notes the broker the day after the release of annual results.

"Michelin is modestly remunerating shareholders with a dividend of 1.35 euros and a share buyback program of up to one billion euros (over three years), while management sees no reason to accelerate deleveraging", it adds.

For its part, Oddo BHF reiterates its 'outperform' rating and raises its target price for Michelin from €36 to €38, on the heels of a publication that leads it to revise its estimates upwards and further confirms its positive opinion of the stock.

"The tire maker remains one of our favorite stocks in the sector, with a profile that we still consider differentiating within the sector (more defensive and offering greater visibility), while not lacking in assets", the analyst believes.

Oddo BHF stresses 'an improvement in volume momentum still in sight, a still very solid price/mix component and a best-in-class financial situation', with a valuation that remains attractive despite the stock's good performance last year.

UBS also confirms its Buy recommendation on the stock, with an unchanged target of E37 following the announcement of figures for 2023. The price target represents a potential upside of 20%.

The analyst believes that conservative forecasts for the 2024 financial year offer scope for further upgrades.

Figures for the 2023 financial year are solid, despite lower volumes. Orientation is cautious for fiscal 2024, says UBS.

For 2024, Michelin's objective is to achieve segment operating income in excess of €3.5 billion at constant exchange rates and reported free cash flow before acquisitions in excess of €1.5 billion.

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