Michelin Shares Drop Nearly 2%, Market Digests Annual Results
Michelin shares fell by 1.94% this Friday morning to 33.29 euros, following the release of its annual results for 2025. The stock is trading close to its technical resistance band after a rise of over 15% in three months. This session follows an upward revision of the price target by Oddo BHF, which occurred the day before.
Annual Financial Performance
Michelin published its annual accounts for the fiscal year 2025 on Tuesday, reporting an operating result from sectors of 2.9 billion euros at constant exchange rates. The free cash flow before acquisitions was established at 2.1 billion euros, confirming the robust financial structure of the Clermont-Ferrand based tire manufacturer. These results were achieved in an environment characterized by a 4.7% contraction in volumes, particularly affecting the Heavy Truck and Agricultural segments in the North American market. However, the group managed to limit the impact of this decline through improvements in its product mix. The next key event to watch will be the publication of the first quarter 2026 sales, scheduled for April 29.
Technical Analysis of the Stock
Technically, Michelin's stock price is at 33.29 euros, just below the identified resistance at 33.85 euros, which almost coincides with the upper Bollinger band at 33.86 euros. The RSI, at 72, is in the overbought zone, indicating that the stock has experienced a sustained upward momentum over recent weeks, leading to a quarterly increase of more than 15%. Regarding analyst recommendations, Oddo BHF raised its price target yesterday from 30 to 32 euros, while maintaining a neutral stance on the stock. This updated target remains below the current stock price of 33.29 euros, implying a potential downside of about 3.9% compared to the trading level this Friday morning.
