Continental: Invest Securities reduces target price

(CercleFinance.com) - Invest Securities reiterates its "buy" rating on Continental shares while reducing its target price for them from 108 euros to 88 euros, following the group's quarterly publication and management reducing its 2022 guidance, which seem fragile in the current context.


A preliminary publication of Q1 2022 results previously warned that the automotive division would make a loss. The final figures confirm this, with an EBITA margin in the Auto division of -3.9%, although tyres (17.1%) and Contitech (5.4%) offset this, the broker said.

After already sharply reducing its 2022/24 EPS estimates in March, the broker is reducing them again by -7% in 2022. The analyst says that its EPS estimates are already at the bottom end of the reduced guidance and even below for the auto division, the analyst says.


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