Stifel maintains its 'Hold' rating on Michelin shares, with its price target raised from 26.5 euros to 30.5 euros.

The research firm indicates that it has raised its 2022/2024 EPS sequence by an average of 6%.

Indeed, Stifel models 2022 earnings 'at record levels' despite deteriorating volumes in Q4 2022 (-6%/-7%).

Profits for 2023 may lack momentum (at best stagnant), but FCF should recover to more normative levels as WCR volatility dissipates (we model 1.8 BdE, on average, through to 2025)', concludes the analyst.

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