Analysts Downgrade Michelin Shares to Sell

Michelin shares have dropped by 6.44% following Societe Generale SA’s decision to downgrade the leading French tyre manufacturer’s stock to ‘sell.’ Societe Generale had previously rated Michelin as “hold.”


According to the analysts, Clermont Ferrand-based Michelin is about to feel the pinch of slowing sales of new truck tyres in Europe: “The European market for new truck tyres will probably slow as of 2009, given the end of an equipment cycle as well as the clear deterioration in the economic climate.”

According to Bloomberg, Michelin’s share price has fallen 43% this year. Societe Generale estimates the tyre manufacturer’s share price may fall to 39 euros, a 17 euros drop in its previous price target of 56 euros.

• Michelin range of tyres