Continental: Oddo steers clear, cutting target price
(CercleFinance.com) - Oddo maintains its "underperform" rating on Continental shares, although has reduced its target price for them from 70 euros to 65 euros.
The broker reports that its quarterly results published yesterday (Q3 sales of 10.4 billion euros, up 29%, along with adjusted EBIT of 605 million euros) are not a great surprise, although are not of excellent quality either.
The broker believes that negative exceptional items (notably goodwill impairment of 503 million euros) have weighed on net income and should lead to downward revisions of EPS estimates.
Analysts add that Continental still does not seem to be the best placed to take advantage of any potential improvement in the environment (low profitability, track record, lack of catalysts), while visibility over 2023 remains very (too) limited.
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