Exane upgrades Michelin to 'neutral', sees signs of recovery

** Exane BNP Paribas upgrades French tyre manufacturer Michelin ML to "neutral" from "underperform", seeing early signs of stabilisation, improving outlook for 2026 after the challenging first half of 2025

** The broker says Michelin appears to be nearing an inflection point with a rebound in volumes anticipated from the second half of the year

** Recovering demand in the original equipment market and easing raw material costs should support a more positive view on volumes, margins and pricing power, it adds

** Exane BNP Paribas raises its target price to 31 euros from 27 euros, but notes the market has yet to fully price in the risk of a delay in the company's 2026 targets

** Among the 15 analysts that cover Michelin, the breakdown of recommendations is 10 "strong buy" or "buy," 3 "hold" and 2 "sell" or "strong sell."