Continental shifts toward pure-player status, Alstom gains momentum on the rails
Continental is moving forward with the sale of ContiTech to become a tire pure player. ArcelorMittal provides reassurance as BofA believes energy costs can be passed on, while STMicroelectronics surges following a Deutsche Bank upgrade on AI cloud prospects. Meanwhile, Ithaca Energy drops alongside the collapse of Brent crude, and Cosmo Pharmaceuticals plunges after revenue was halved.
ArcelorMittal (+5%): BofA reiterates its buy rating with a target of 65 EUR for the steelmaker, estimating that rising energy costs can be passed on to customers. The risk of demand destruction remains limited despite the tariff quotas planned for July.
Continental (+5%): The German equipment manufacturer is moving toward the sale of ContiTech with promising discussions, marking its transformation into a tire pure player. The dividend maintained at 2.70 EUR despite the net loss, along with 2026 outlooks for margin improvement, are reassuring investors.
Schneider Electric (+4%): Goldman Sachs maintains its buy rating on the energy management specialist and significantly raises its price target from 294 to 322 EUR. The upgrade reflects confidence in the group's prospects, driven by the energy transition and digitalization.
Alstom (+4%): The French rail infrastructure manufacturer is benefiting from renewed interest following the announcement of a new contract in Poland. Alstom will provide signaling solutions for the Lodz high-speed line tunnel, thereby strengthening its order book.
Rolls-Royce (+4%): The British engine company is gaining ground following the signing of a memorandum of understanding with PGZ for joint projects involving MTU propulsion systems.
Hugo Boss (+3%): The fashion specialist climbs after the publication of its annual results. Annual EBIT came in at 391 million euros, compared to 361 million a year earlier and above analyst expectations.
STMicroelectronics (+3%): Deutsche Bank raises its price target from 28 to 32 EUR for the Franco-Italian semiconductor manufacturer, buoyed by prospects in the AI cloud with over 500 MUSD in revenue expected in 2026. The recent contract with AWS and the launch of new ultra-wideband chips are amplifying enthusiasm.
Stocks on the decline:
Cosmo Pharmaceuticals (-10%): The Swiss company published disappointing results. Revenue was halved year-on-year, reaching 104.17 MEUR compared to 266.79 MEUR, resulting in a net loss of 3.61 MEUR.
Ithaca Energy (-5%): The U.S. President has managed to calm the panic; the price of a Brent barrel has lost 17% since its opening price on Monday. Oil companies are falling along with crude. Evraz Plc (-12%), BW Energy (-6%)
Orkla ASA (-3%): One of Norway's leading industrial groups is diving on the stock market. DNB Carnegie lowered the price target to 100 NOK from 110 previously while reiterating its buy recommendation.
Alstom is one of the world leading manufacturers of infrastructures for rail transport sector. Net sales break down by family of products and services as follows:
- rolling stocks (51.1%): trains, tramways and locomotives;
- railway services (24.3%): maintenance, modernization, management of spare parts, support and technical assistance services;
- signaling, information and control systems (14.3%);
- railway infrastructures (10.3%): infrastructures for the track laying, lines electrical power systems, electromechanical equipment, telecommunication devices and traveler information in station, terminals for automatic purchase of tickets, access to escalators, lifts for disabled, automatic landing doors on platforms, ventilation, air conditioning and lighting systems).
Net sales are distributed geographically as follows: France (17.1%), Europe (39.6%), Americas (19.8%), Asia/Pacific (14.5%) and Middle East/Africa/Central Asia (9%).
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