Oddo BHF maintains its 'underperform' rating on Continental shares, with a price target reduced from €70 to €60.

At yesterday's focus session, Continental expressed confidence in its ability to rebound in Q2 and achieve its full-year targets.

Continental also confirmed its full-year targets, which are still based on relatively consensual scenarios for automobile production (-1/+1%) and tire markets (slight increases).

He is therefore still targeting sales of E41-44 bn (consensus E42.2 bn) and adjusted MOP of 6.0-7.0% (consensus 6.8%, i.e. 7.8% required in the middle of the range over the remaining 9 months), i.e. adjusted EBIT in the middle of the range at E2.8 bn (consensus E2.9 bn).

We expect the progress promised in the coming quarters to become more constructive, and still prefer a tire pure-player like Michelin (Outperformance, OC 40 E)", stresses the analyst.

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