Continental: Invest Securities cuts target price
(CercleFinance.com) - While maintaining its "neutral" rating on the Continental share, Invest Securities has cut its corresponding target price from 122 euros to 89 euros, after it reduced its sequence for 2020/2022 estimates (excluding the impact of the Vitesco "spin off"), by -31%/-25%/-9% respectively.
After Q1 2020, when there will be a sharp drop, in 2020 the automobile market will now no longer be stagnant, but instead, due to the coronavirus, is expected to fall by 2% to 5%, with a decline in the group's EBITA margin (-0.9pt/-1.9pt) bringing the guidance to below expectations for 2020, the broker underlines.
While its new target price still entails upside potential of 6% in a scenario seemingly at the end of a two-year cycle of downward revisions, the analyst judges that it is too early to adopt a positive stance once again, despite emerging entry points.
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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.
After Q1 2020, when there will be a sharp drop, in 2020 the automobile market will now no longer be stagnant, but instead, due to the coronavirus, is expected to fall by 2% to 5%, with a decline in the group's EBITA margin (-0.9pt/-1.9pt) bringing the guidance to below expectations for 2020, the broker underlines.
While its new target price still entails upside potential of 6% in a scenario seemingly at the end of a two-year cycle of downward revisions, the analyst judges that it is too early to adopt a positive stance once again, despite emerging entry points.
Copyright (c) 2020 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.