Continental: Invest Securities keeps 'Sell'

(CercleFinance.com) - Invest Securities confirms its 'Sell' recommendation on the Continental share, citing a “lack of momentum” in the German auto parts firm, which published its quarterly figures yesterday.


The target price dipped from 209 to 202 euros, auguring a potential downswing of more than 10%.

“This publication is logically in line with expectations as it came after the mid-April profit warning and the cut in guidance on the EBITDA margin for 2018” reminds a note, citing its Rubber (tyre) branch.

“M&A announcements are expected in July although we don't yet know what plans will be presented. Lately, the restructure in the 'Powertrain' division seemed to be making headway. Outside of this speculative aspect, the momentum in the 1st quarter of 2018 and our valuations with no room for potential lead us to maintain our 'Sell' opinion”, comment the specialists.

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