Significant Rise in Berenberg's Predicted Continental Share Value
Consider This: Berenberg Private Bank Boosts Ambitions for Automotive Giant Continental
Berenberg Private Bank has cranked up its game plan for automotive powerhouse Continental, upping their price target from a steady 59.00 euros to a daring 68.00 euros. Despite the ambitious boost, they've chosen to stick with the "Hold" rating. Romain Gourvil, their sharp-eyed analyst, penned a riveting industry report on automotive suppliers yesterday, highlighting the promising uptick in the sector's profit margins this year. However, the lingering burden of high inventory levels could keep free cash flow on its toes, a letdown that reared its head in the final quarter of 2022.
A Closer Look at Continental
Continental took a sharp dive in its preliminary results, with its free cash flow straying far from the company's originally suggested forecast and the average analyst estimate. Instead of a projected 2022 free cash flow of 600 to 800 million euros, Continental now anticipates a mere 200 million. This bullish expansion came with its fair share of financial pressures in 2022.
On the 19th of January, 2023, Jefferies took a step back from their gung-ho "Buy" endorsement, settling for a "Hold" stance and lowering their price target from a lofty 83 to a more modest 70 euros.
On the 20th of January, as the Continental share tiptoed through the 60/61 euros range, it saw a 0.6 percent increase today, dancing above the 64.00 euros mark.
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In the grand canvas of information, Berenberg Private Bank's strategic repositioning for Continental is a compelling chapter. Their recent moves suggest a keen focus on operational resilience (as demonstrated by their evaluation of Klépierre, which they upgraded to "buy" due to enhanced occupancy rates and financial performances) and keen interest in sector-specific opportunities.
The broader industry landscape, such as the auto sector's anticipated recovery and supply chain stabilization, usually informs the forecast for automotive suppliers like Continental in the coming year. Regrettably, there are no directly related references available in the provided sources. For precise 2023 numbers, you'd be wise to consult Continental’s annual reports or specialized equity research platforms.
Berenberg Private Bank has set aims to improve the financial situation of Continental, as shown by their boosted price target for the company to 68.00 euros in 2022, despite maintaining the "Hold" rating. The high costs associated with inventory levels could pose a challenge to Continental's free cash flow, as indicated by the low 2022 free cash flow anticipation of 200 million euros. Berenberg's strategic repositioning for Continental underscores their focus on operational resilience and sector-specific opportunities.
