Outperform Rating Pushes Michelin Shares to 17-year High

Michelin shares reached their highest price in 17 years following JPMorgan’s decision to rate the manufacturer as “Outperform.” Michelin stock in Paris rose 1.15 euros (£0.77, $1.47), or 1.8 per cent, to 65.50 euros (£44.31, $83.84). The shares are up 38 per cent this year, valuing the company at about 9.39 billion euros (£6.35 billion, $12 billion). Houchoise also commented that the company’s staffing level is currently “30 per cent too high.”

Michelin managing partner, Michel Rollier said on 18 October that the company aims to report earnings before interest, taxes and one-time items equal to 10 per cent of sales by 2010 and a 3.5 per cent increase in annual revenue. On 28 July Michelin reduced its 2006 margin target from 8.8 per cent of sales after first-half earnings were hit by higher rubber prices.