Michelin’s H1 23 results were slightly above consensus through the P&L. The group reached a record FCF generation on tight inventory management and (expected) non-recuring effects. The FY23 guidance was raised as cost inflation slows down and offsets lower volumes. We will raise our forecasts for FY23 and continue to see the valuation as an opportunistic buy on weakness as we believe investors are over-focusing on the decline in volumes.
28 Jul 2023
H1 23: deflating the headwinds from cost inflation
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H1 23: deflating the headwinds from cost inflation
Cie Gnrl des Etblsmnts Michelin SCA (ML:EPA), 0 | Cie Generale des Etablissements Michelin SA (ML:PAR), 0
- Published:
28 Jul 2023 -
Author:
Valentin Mory -
Pages:
3
Michelin’s H1 23 results were slightly above consensus through the P&L. The group reached a record FCF generation on tight inventory management and (expected) non-recuring effects. The FY23 guidance was raised as cost inflation slows down and offsets lower volumes. We will raise our forecasts for FY23 and continue to see the valuation as an opportunistic buy on weakness as we believe investors are over-focusing on the decline in volumes.