Alexander Wahl, an analyst from Stifel Nicolaus, maintained the Buy rating on Continental Aktiengesellschaft (CTTAF – Research Report). The associated price target was lowered to €76.00.
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Alexander Wahl has given his Buy rating due to a combination of factors, including the positive outlook for Continental Aktiengesellschaft’s Automotive and Tires divisions. The company’s Automotive segment is expected to achieve a break-even adjusted EBIT in the first quarter, supported by improved pricing and reduced fixed costs, despite challenges from delayed launches and restructuring provisions.
Furthermore, the Tires division is projected to have slightly positive volumes and a margin at the lower end of the full-year range, which suggests a potential upside compared to current consensus estimates. Although ContiTech faces difficulties due to weak light vehicle production and industrial demand, efficiency measures are expected to mitigate the impact on margins. Overall, the company’s group adjusted EBIT forecast significantly exceeds consensus, contributing to the Buy recommendation.
In another report released today, Berenberg Bank also maintained a Buy rating on the stock with a €75.00 price target.