Continental: Stifel raises target price
(CercleFinance.com) - Stifel has confirmed its "buy" rating on German tyre maker Continental's shares, having nudged up its previous target price to 114 euros (vs.
113 euros).
The analyst expects disappointing Q3 and Q4 results, with a 16% drop in sales in the Automotive segment in the third quarter, due to semiconductor shortages affecting the automotive sector.
Furthermore, for 2021, the broker anticipates an adjusted EBIT margin in the automotive segment of -1.7% (thus well below the group's guidance of 0.5% to 1%), with 5.8% for the group (guidance of 6.5% to 7.5%).
However, Stifel believes that Continental has the potential to recover earnings, which will become clearer as the supply chain problems and cost overruns ease.
However, the share is failing to advance today, and it is currently down about 0.8% at nearly 98 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.
113 euros).
The analyst expects disappointing Q3 and Q4 results, with a 16% drop in sales in the Automotive segment in the third quarter, due to semiconductor shortages affecting the automotive sector.
Furthermore, for 2021, the broker anticipates an adjusted EBIT margin in the automotive segment of -1.7% (thus well below the group's guidance of 0.5% to 1%), with 5.8% for the group (guidance of 6.5% to 7.5%).
However, Stifel believes that Continental has the potential to recover earnings, which will become clearer as the supply chain problems and cost overruns ease.
However, the share is failing to advance today, and it is currently down about 0.8% at nearly 98 euros.
Copyright (c) 2021 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.