Continental: Stifel still a buyer, trims TP
(CercleFinance.com) - Stifel confirms its buy rating on Continental shares, while reducing its target price for them from E88 to E86.
"When Schaeffler AG (SHA) announced its bid for Vitesco (VTSC) on 9 October, we noted considerable investor interest in the implications for Continental," the analyst says.
The broker wonders whether the Schaeffler family could use the planned merger with Vitesco as a model for acquiring Continental's automotive business.
"We think that Continental's automotive business is implicitly ascribed a negative equity value. This would make a spin-off a rewarding solution and could either result in a higher valuation for Continental's assets or allow Schaeffler AG to form one of the top-3 global automotive suppliers," Stifel believes.
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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.
"When Schaeffler AG (SHA) announced its bid for Vitesco (VTSC) on 9 October, we noted considerable investor interest in the implications for Continental," the analyst says.
The broker wonders whether the Schaeffler family could use the planned merger with Vitesco as a model for acquiring Continental's automotive business.
"We think that Continental's automotive business is implicitly ascribed a negative equity value. This would make a spin-off a rewarding solution and could either result in a higher valuation for Continental's assets or allow Schaeffler AG to form one of the top-3 global automotive suppliers," Stifel believes.
Copyright (c) 2023 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.