Michelin downgraded to Underweight from Overweight at Barclays

Barclays analyst Erwann Dagorne double downgraded Michelin to Underweight from Overweight with a price target of EUR 16, down from EUR 18. The firm’s stance on European autos remains Negative in the context of a “peak earnings” narrative, fueled by ongoing pricing normalization, inflationary headwinds and margin-dilutive battery electric vehicle proposition. However, For EU suppliers, the analyst sees “light at the end of the tunnel” through a combination of organic growth, operating leverage and self-help that should more than offset stickier labor and energy input cost headwinds. As such, Barclays is shifting back into a more offensive positioning.