Continental: shares rise after BofA upgrade

(CercleFinance.com) - Continental shares are up 1.
2% on Thursday after BofA upgraded the German auto-parts maker to "buy" from "neutral".

BofA analysts say in a note that fourth-quarter results could "surprise positively" since automotive production remained strong at the end of last year, both in Germany and Europe.

"We expect Continental to continue to "over-deliver" on its full-year 2020 guidance," they write.

With the "good old" Conti back, BofA - which raised its target price from 126 euros to 150 euros - said it expects a return to pre-crisis EBIT margin and share price levels.

Continental shares have risen by 1.8% year-to-date, almost in line with the 2% rise in the DAX index.

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