35 per cent OP Increase at Conti – Analysts Predict
Deutsche Bank analysts are predicting that Continental’s operating profit will increase by as much as 35 per cent in the company’s fourth quarter results. They expect sales to reach 3,610 million euros, up 4.5 per cent on the same period last year. Deutsche Bank predicts profits will peak at 431 million euros, up 35 per cent against the market consensus of 390 million euros. This is put down to the reduction of exceptional charges levelled at the company – last year this reached 100 million euros in the fourth quarter.
Meanwhile, Credit Suisse has lifted Continental’s target price to 100 euros from 90 euros, based on an earnings preview. Continental reportedly says it expects to continue to beat expectations. Credit Suisse recommended investors stick with “quality names” such as Conti, given the tough auto environment and significant raw material headwinds. The analysts reiterated their ‘outperform’ rating.