Michelin Shares Gain 4% to €32.46 Following Brent's Drop
The Clermont-based tire manufacturer's stock is among the most significant risers on the Paris stock exchange at midday, following the decline in Brent. The easing of barrel prices, combined with a 2.79% rise in the CAC 40, supports the session. The price is approaching its technical resistance at €32.42.
A Rebound Aligned with the Easing on Oil Prices
Michelin's stock has risen 4.07% to €32.46, up from €31.19 the previous day. This movement occurs as Brent plummets by about 8.6% to $100.44, amid diplomatic rapprochement between Washington and Tehran reported by Axios and Reuters. For a tire manufacturer, the drop in the barrel reduces the bill for raw materials, as synthetic rubber and several petrochemical inputs are indexed to crude oil. The index context amplifies the session: the SBF 120 is up 2.72% and the DAX gains 2.58%. The rebound of the stock erases most of the decline of the last few weeks: the performance over three months remains at -1.49%, and over one year at -0.61%. On April 8, the stock had already gained 5.1% under similar circumstances, following a ceasefire and the prospect of reopening the Strait of Hormuz.
The Price Tests Its Resistance, Schedule Becomes Clearer
The stock is nudging against its resistance at €32.42, slightly surpassing it at midday. The price moves in the upper range of the Bollinger Bands, close to the upper limit at €32.84, indicating a tense short-term setup. The MM50 at €30.95 and the MM200 at €30.28 are both below the current price, confirming a short to medium term trend recovery. The RSI at 51 remains neutral, leaving room before an overheating signal. On the fundamentals side, the group had lowered its guidance on October 13, 2025, during its third-quarter release, with an Expected Operating Result of the Sectors between €2.6 and €3.0 billion and a targeted Free Cash Flow before acquisitions between €1.5 and €1.8 billion. Analysts' opinions remain divided: at the end of April, Deutsche Bank had lowered its target, after the divergence shown in mid-April between Barclays and Morgan Stanley. Next key date on the calendar: the general assembly on May 22, before the half-year results on July 27.
