Continental: Invest Securities raises target price

(CercleFinance.com) - Invest Securities maintains its buy rating on Continental shares, having increased its target price for them from 80 euros to 86 euros, after the German group's results were marked by the turnaround in the automotive sector in the face of a sequentially deflating tyre business.


Noting that these results came in above expectations (apart from free cash flow), and that 2022 guidance remained unchanged - except for operating FCF - the broker has raised its 2022 EPS estimate by 12.8%.

The broker adds that the outlook remains reassuring and is even confident for Q4 - particularly in Auto - with should finally finish 2022 with a (just) positive EBITA margin of around 1% (according to the broker), with the group beginning 2023 with significant leverage if headwinds subside. A big "if" - the stock is currently down 0.2%, underperforming the German market by about 1%.


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