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- Deutsche Bank reiterates a Buy rating on Michelin (OTCPK:MGDDY) and keeps it slotted as a top pick after the company's earnings update impressed.
- Analyst Christoph Laskaw says the tire giant reported another strong set of numbers with a particularly strong print on price/mix.
- "This confirms the current ability to pass on rising cost and is also a key pillar of why we like Michelin and the broader tire sector. Management struck a confident tone during the call and stressed that pricing will be able to offset headwinds from raw mats, logistics and energy. As a result, the company seems comfortable that it will hit consensus numbers which are above the current guidance."
- The takeaway is that Michelin's guidance is factoring in a lot of headroom for potential adverse impacts in Q4, which makes it more of a tactical guide than a very precise pinpoint.
- Compare valuation marks on Michelin.