FRANKFURT (dpa-AFX Broker) - Continental shares consistently led the weak DAX on Thursday. They rose by 1.2 percent to 78 euros at their daily high, once again targeting their recent annual high of 78.68 euros. Breaking through the 80-euro mark would confirm a bottoming out in the long-term chart.
UBS expert David Lesne is quite optimistic that the Investor Day on June 24 could drive the share price. He already considers the shares a "high conviction buy" with the prospect that the split of the group will unlock enormous value. According to Lesne, this is likely to be priced in before the deal is completed.
The automotive supply business is to be floated on the stock exchange as Aumovio in September, with the plastics technology division ContiTech then being spun off in 2026. According to Lesne, Conti is now increasingly being treated as a pure tire company with industry-leading return on invested capital (ROIC) and an attractive dividend story.
At the beginning of 2018, the shares had peaked at a good €257 and then slumped to almost €44 by September 2022. While the Hanover-based company's tire division is delivering stable profits, the automotive supplier division, which leads in terms of sales, is struggling with high costs and a weak market. /ag/mis
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