Continental: Oddo BHF cuts target price
(CercleFinance.com) - This morning an analyst at Oddo BHF says that he reducing his target price for the Continental stock, now expecting 135 euros (vs.
160 euros previously), after preliminary 2018 results were in line with expectations - and after two profit warnings last year.
Although unsurprising, the group's outlook for 2019 suggests that difficulties for Continental, and more generally for OEMs as a whole, are far from behind us and that 2019 should be worse than 2018 (in line with H2 18), a fortiori at the beginning of the year, Oddo BHF says.
Noting that Continental's 2019 guidance is a "broad" range (sales of between 45 billion and 47 billion euros, with an adjusted OM of between 8% and 9%, adjusted EBIT of between 3.6 billion and 4.2 billion euros...), which reflects current uncertainties, Oddo BHF therefore maintains its “neutral” rating on the stock. The analyst's target suggests upside potential of around 4%, with the share's valuation now in line with the sector.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
160 euros previously), after preliminary 2018 results were in line with expectations - and after two profit warnings last year.
Although unsurprising, the group's outlook for 2019 suggests that difficulties for Continental, and more generally for OEMs as a whole, are far from behind us and that 2019 should be worse than 2018 (in line with H2 18), a fortiori at the beginning of the year, Oddo BHF says.
Noting that Continental's 2019 guidance is a "broad" range (sales of between 45 billion and 47 billion euros, with an adjusted OM of between 8% and 9%, adjusted EBIT of between 3.6 billion and 4.2 billion euros...), which reflects current uncertainties, Oddo BHF therefore maintains its “neutral” rating on the stock. The analyst's target suggests upside potential of around 4%, with the share's valuation now in line with the sector.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.