Continental: Stifel raises target price
(CercleFinance.com) - Stifel reinstates its "buy" recommendation on the shares of German tyre maker Continental, having increased its target price for them from 114 euros to 119 euros, while reducing its 2021 adjusted EBIT estimate by around 6% (although leaving its 2022-23 estimates broadly unchanged).
"In our opinion, CON remains one of the less liked suppliers to play an upcoming volume recovery due to its many moving parts and low visibility on costs," the broker said.
However, Stifel believes that "the combination of near-trough sentiment and earnings offers recovery potential both for earnings and multiples as volumes improve and excess costs reverse on normalizing supply chains."
The share is currently up the best part of 2% in Frankfurt.
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