Continental: Berenberg cuts target price
(CercleFinance.com) - A few hours before Continental issued a profit warning for 2018, analysts at Berenberg decided to reduce their target price for the German automotive supplier's share, cutting it from 190 euros to 180 euros.
The broker - which has a "sell" rating on the shares - said that near-term risks are intensifying for auto suppliers.
"In the second quarter, the trend of declining outperformance against region-weighted auto production growth continued on from the first quarter despite sequentially higher headline organic growth on average," it said.
This morning Conti cut its guidance for 2018, citing citing lower sales expectations, along with costs and warranty claims. The shares are currently down 13.9 percent.
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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 "sell" rating on the shares - said that near-term risks are intensifying for auto suppliers.
"In the second quarter, the trend of declining outperformance against region-weighted auto production growth continued on from the first quarter despite sequentially higher headline organic growth on average," it said.
This morning Conti cut its guidance for 2018, citing citing lower sales expectations, along with costs and warranty claims. The shares are currently down 13.9 percent.
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.