Continental jumps as strong Q3 in tires, automotive boosts spin-off confidence

Opmobility SE

11/11/2024 08:44

** Shares in Continental  CONG.DE  jump around 6% after the
German automotive and industrial supplier posted Q3 earnings
beat and confirmed its outlook for the automotive segment, which
analysts say boosts confidence in the spin-off plans
    ** Adj. EBIT in automotive segment came in at 203 mln euros
vs cons 192 mln, with margin improving to 4.2% y/y
    ** "Key for the stock is that it's been explicitly stated
that the performance of autos is 'fulfilling requirements for a
spin-off by end 2025," Jefferies says
        ** Pal Skirta, an analyst at Metzler, says the
automotive division showed a "positive development, despite the
soft market environment for German OEMs," and also points to a
strong performance in tires
    ** Peers Valeo  VLOF.PA , Forvia FRVIA.PA  and OPmobility
 OPM.PA  rise between 1.5% and 2%
    ** If gains hold, Continental's stock will see its best day
since early October; it is at the top of German blue-chip index
 .GDAXI  
 
($1 = 0.9332 euros)

 (Reporting by Chiara Holzhaeuser and Louis van Boxel-Woolf)
 ((Chiara.Holzhaeuser@thomsonreuters.com))