Continental AG upgraded to Overweight from Equal Weight at Barclays

Barclays analyst Erwann Dagorne upgraded Continental AG to Overweight from Equal Weight with a price target of EUR 90, up from EUR 70. The firm’s stance on European autos remains Negative in the context of a “peak earnings” narrative, fueled by ongoing pricing normalization, inflationary headwinds and margin-dilutive battery electric vehicle proposition. However, For EU suppliers, the analyst sees “light at the end of the tunnel” through a combination of organic growth, operating leverage and self-help that should more than offset stickier labor and energy input cost headwinds. As such, Barclays is shifting back into a more offensive positioning.