Continental: Invest Securities raises target price
(CercleFinance.com) - Invest Securities has reinstated its "buy" rating on the Continental share, while raising its corresponding target price from 70 euros to 91 euros, after the broker increased its EPS estimates for the German automotive supplier.
While noting that its Q1 EBITA margin of 4.4% has not bottomed out, which is anticipated in the second quarter, the analyst believes that Continental is resolutely adapting to the crisis in a disciplined way by demonstrating strong outperformance and positive FCF.
For 2020, the broker now expects sales to fall by less (-11%), versus -14% previously), with a 2020 EBITA margin of 2.9% versus 2.6% previously.
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