Stifel reaffirms its 'buy' recommendation on Continental and raises its target price from €76 to €85, on the heels of a quarterly publication that saw the group confirm its forecast for an automotive margin of 2.5-3.5%.

This confirmation, contrary to the broker's expectations, implies a margin of at least 7% in the fourth quarter of 2024, a level which 'lends credibility to the current consensus for 2024-25'.

'Credible signs that restructuring efforts are finally bearing fruit, coupled with the potential demerger of the automotive division, could help unlock value', also believes Stifel.

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