Continental: Jefferies raises target price
(CercleFinance.com) - Jefferies has said that it has raised its target price on German auto parts supplier Continental to 260 euros from 245 euros as it continues to see upside potential in the shares.
The broker - which has a "buy" recommendation on the stock - said it expects the tyre maker to post another year of resilient performance.
"Despite lack of earnings upgrades, shares have re-rated in 2017 on stronger auto growth and increased confidence in its order book," Jefferies points out in a report.
Despite limited upside on 2018 consensus, shares could continue to re-rate on the back of an improving sector and resilient cash flow performance, it said.
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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.
The broker - which has a "buy" recommendation on the stock - said it expects the tyre maker to post another year of resilient performance.
"Despite lack of earnings upgrades, shares have re-rated in 2017 on stronger auto growth and increased confidence in its order book," Jefferies points out in a report.
Despite limited upside on 2018 consensus, shares could continue to re-rate on the back of an improving sector and resilient cash flow performance, it said.
Copyright (c) 2018 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.