Continental: Berenberg upgrades stock
(CercleFinance.com) - Berenberg has upgraded German auto parts maker Continental from "sell" to "hold," and has cut its target price for the stock from 150 euros to 140 euros, as part of a research note on the automotive sector.
"Fading cyclical tailwinds and the industry's lack of structural improvement mean that the automotive sector is in the process of a cyclical margin normalisation," the broker writes in the note.
"We believe that the cyclical risks are more appropriately reflected in the current valuations for suppliers versus original equipment manufacturers (OEMs)," it adds, thus preferring suppliers.
Continental shares are currently down 0.8% at 137.5 euros.
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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.
"Fading cyclical tailwinds and the industry's lack of structural improvement mean that the automotive sector is in the process of a cyclical margin normalisation," the broker writes in the note.
"We believe that the cyclical risks are more appropriately reflected in the current valuations for suppliers versus original equipment manufacturers (OEMs)," it adds, thus preferring suppliers.
Continental shares are currently down 0.8% at 137.5 euros.
Copyright (c) 2019 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.