Continental: Stifel still a buyer, trims target price
(CercleFinance.com) - Stifel reiterates its "buy" rating on Continental shares, while trimming its target price for them from 95 euros to 91 euros, after reducing its estimates for the German group's tyre business.
In view of the latest quarterly figures, the broker nevertheless believes that the margin of the automotive technology business "could inflect in 3Q22 and be in positive territory for the first time after five consecutive quarters".
Due to the market's pessimism regarding this business, "Coupled with a valuation that effectively reflects only CON's Tires business and offers an option on its Auto business for free", Stifel says it sees an attractive entry point for the stock.
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