Continental: Commerzbank raises target price; maintains hold
(CercleFinance.com) - Commerzbank said on Monday that it has raised its target price for the Continental stock from 220 euros to 247 euros, maintaining its "hold" rating on the stock.
After the German tyre company confirmed that it is in the early stages of reviewing its organisational structure, the broker says a disposal of the rubber unit could be an obvious option, while seeing a full disposal "rather unlikely."
"We see a separate listing of a minority stake as an option, but this would have limited upside for the company value," Commerzbank adds.
The German broker says it would prefer Conti to go further and hive off its powertrain unit, while noting that the share price already reflects potential corporate action.
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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 the German tyre company confirmed that it is in the early stages of reviewing its organisational structure, the broker says a disposal of the rubber unit could be an obvious option, while seeing a full disposal "rather unlikely."
"We see a separate listing of a minority stake as an option, but this would have limited upside for the company value," Commerzbank adds.
The German broker says it would prefer Conti to go further and hive off its powertrain unit, while noting that the share price already reflects potential corporate action.
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.