Continental : A welcome transformation, but already priced in
Continental's ongoing transformation into a pure player in the tire sector, first with the imminent spin-off of its automotive business and then, in 2026, with the sale of ContiTech, makes it undeniably more attractive fundamentally. This justifies the re-rating seen since the start of the year and our rating upgrade to Neutral (TP € 79 vs € 70). However, we now see limited upside, and, among tire makers, we see Michelin as more attractive and maintain our preference for the stock (better earnings momentum, more diversified profile, balance sheet, valuation).Continental is an automotive industry supplier. Co.'s automotive divisions comprised of: Chassis & Safety, which develops and produces systems that provide safety and enhanced vehicle dynamics; Powertrain, which develops solutions for gasoline and diesel engines, as well as hybrid and electrical drive systems; and Interior, which provides solutions for information management within vehicles and networking between vehicles. Co.'s rubber divisions comprised of: Tires, which provides tires for passenger cars through trucks, buses and construction site vehicles to special vehicles, motorcycles and bicycles; and ContiTech, which develops products made from rubber and plastic.
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
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