Analyst Recommendation Cut on Continental
As Merrill Lynch’s Michelin recommendation was upgraded to see in the new month, Continental’s was cut to “underperform” from “neutral”. The bank believes that Continental’s stock will see a fall to 60 euros in the coming weeks, after the expiration of Schaeffler’s offer to buy at 75 euros per share until reaching nearly half of the company’s total stock. Conti was down 0.1 per cent (5 cents) today at 74 euros in Frankfurt.
Merrill also links Conti’s predicted drop to Michelin’s rise, suggesting that investors who sell their shares in the German company could seek to invest in its rival in France.