JPM ups Michelin, Nokian Tyres, sees earnings recovery despite rising costs

Pirelli & C.

20/08/2026 10:28

** J.P.Morgan says European tyre makers face improved replacement demand, particularly for truck tyres, while it warns of weak original equipment volumes, rising raw material costs
** YTD data shows global OE volumes falling 2% in trucks, with replacement tyres rising 2%, JPM says
** JPM sees EU's anti-dumping duties on Chinese passenger car and light truck tyre imports as supportive development for European producers
** It, however, warns that rising raw-material costs are becoming a bigger headwind, with tyre spreads in Europe deteriorating and companies guiding for more pressure in 2H 2026
** Brokerage upgrades Michelin MICP.PA to "overweight" from "neutral", its PT to €42 from €35, expecting  margin recovery amid improving truck replacement demand, structural growth in Polymer Composite Solutions
** JPM raises Nokian Tyres TYRES.HE to "neutral" from "underweight", its PT to €15 from €7.7, citing improved earnings momentum, although it sees execution risks around the Finnish company's 2029 targets and elevated leverage
** Broker maintains Pirelli PIRC.MI at "neutral" following a recent downgrade, and Continental CONG.DE at "overweight", citing resilient tyre profitability, supportive price/mix and improving FX

 (Reporting by Lucie Barbier in Gdansk)
 ((lucie.barbier@thomsonreuters.com))