Continental shares in decline: How does the EU Commission investigation affect the value?

Continental shares in decline: How does the EU Commission investigation affect the value?

According to a report by m.ariva.de,

Continental shares (Continental shares) are currently trading more easily on the German stock exchange. The share is currently trading at 73.84 euros. Continental's shares are currently down 2.79 percent. It has deteriorated by 2.12 euros compared to the previous day's closing price. The price for the Continental share certificate is currently 73.84 euros. If you use the DAX (DAX) as a benchmark, then Continental shares are behind. With a score of 16,885 points, the DAX is currently down 0.20 percent compared to the previous day's closing price. Owners of Continental shares do not have to fear a new all-time low: the stock reached its previous low of EUR 8.62 on September 21, 2001.

The Continental company offers intelligent solutions for vehicles, machines, traffic and transportation worldwide. The company operates in four sectors: automotive, tires, ContiTech and contract manufacturing. The company offers safety, braking, chassis, drive and motion control systems, solutions for assisted and automated driving, audio and camera solutions for vehicle interiors as well as intelligent information and communication technology solutions.

Continental faces various competitors on the market. This includes Goodyear (Goodyear shares); the company's stock is currently in the red at 3.14 percent. However, the price at Bridgestone (Bridgestone shares) has hardly changed at the moment; the paper costs 43.67 US dollars, which is about the same as the day before.

The major Swiss bank UBS has left the rating for Continental at “neutral” with a price target of 71 euros in view of antitrust investigations by the EU Commission. The four European tire manufacturers confirmed that searches were carried out and that they were cooperating, wrote analyst David Lesne in a study available on Wednesday. The expert believes that this dampens the sector sentiment somewhat. Regarding possible fines, he mentioned that according to EU law, the maximum penalty in such cases is limited to 10 percent of annual global turnover. The US bank JPMorgan has left the rating for Continental at “Overweight” with a price target of 100 euros. According to a study available on Monday, analyst Jose Asumendi expects group sales of 42.24 billion euros and an operating margin of 6.4 percent for 2023. This is at the upper end of the target range specified by the automotive supplier, he wrote. He raised his profit estimates for 2023 and 2024 and justified this primarily with Conti's rubber division, but also with margin improvements in the automotive sector.

The current developments on the market could cloud the mood around Continental's shares. The antitrust investigations by the EU Commission and the performance of competing companies can have an impact on the market. It remains to be seen how Continental's shares will develop in the next few weeks.