Continental: Invest Securities downgrades stock
(CercleFinance.com) - Invest Securities has downgraded Continental shares from "buy" to "neutral", while reducing its target price for them from E86 to E84 (cp: E77.
4, -1%), with the broker deeming Q4 as just satisfactory.
The group's 2023 guidance is favourable in a "relaxed" environment, with higher-than-expected margin guidance in Auto, helped by growth of over 7% and the turnaround of ContiTech, the analyst said.
Invest Securities adds that its "already optimistic" 22/23/24 guidance has been revised by -15.5%/-6%/-7.2% respectively, resulting in 2023/24 guidance of +28.4%/+18.3%, therefore reflecting the turnaround in Auto and at ContiTech, albeit with higher financial charges.
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