Continental: Invest Securities upgrades sell rating
(CercleFinance.com) - Invest Securities has upgraded its sell rating on the German automotive supplier Continental, now having a "neutral" stance on the stock.
At the same time, it has cut its target price for the share from 202 euros to 183 euros (-9.4%), which is slightly below the share's current price.
This Q2 publication, which follows the announcement of the group's restructuring in 2019 and 2020, proves to be a little weak, particularly with an operating margin under expectations at its Chassis & Safety, Powertrain and ContiTech businesses, analysts said. In the end, it is the fall in taxation that has "saved" the group's net profit.
That said, overall Continental has confirmed its forecasts for 2018. Invest Securities adds that in the long term, the flotation of Powertrain and possibly the group's Tyre business could have a positive impact, although this is also difficult to estimate at this stage. In the meantime, forecasts have been cut, as has the share's target price.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
At the same time, it has cut its target price for the share from 202 euros to 183 euros (-9.4%), which is slightly below the share's current price.
This Q2 publication, which follows the announcement of the group's restructuring in 2019 and 2020, proves to be a little weak, particularly with an operating margin under expectations at its Chassis & Safety, Powertrain and ContiTech businesses, analysts said. In the end, it is the fall in taxation that has "saved" the group's net profit.
That said, overall Continental has confirmed its forecasts for 2018. Invest Securities adds that in the long term, the flotation of Powertrain and possibly the group's Tyre business could have a positive impact, although this is also difficult to estimate at this stage. In the meantime, forecasts have been cut, as has the share's target price.
Copyright (c) 2018 CercleFinance.com. All rights reserved.