CONTINENTAL ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● The share is getting closer to its long-term support in weekly data, at EUR 131.5, which offers good timing for buyers.
● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● With a P/E ratio at 10.48 for the current year and 9.57 for next year, earnings multiples are highly attractive compared with competitors.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 184.45 EUR
