AlphaValue/Baader Europe Cuts Continental AG Estimates Amid Expectations of Lower Volumes

AlphaValue/Baader Europe downwardly adjusted its earnings forecasts for Continental AG (CON.F), with global volumes for 2026, particularly in North America, expected to come in below expectations. The research firm trimmed its sales estimate for 2026 by 3% to 18.3 billion euros, against the German automotive parts maker's guided range of 17.3 billion euros to 18.9 billion euros. The projected EPS for the year was reduced by 3.14% to 6.59 euros. "In addition, we have reduced our FY26 adjusted EBIT estimate by 3% to EUR2.16bn, implying an adjusted EBIT margin of 11.8%, around the midpoint of the 11.0-12.5% guidance range," analysts said Friday. "We expect the group to outperform its profitability guidance in H1, particularly in the Tyres division. However, we expect input cost inflation related to the Middle East conflict to weigh on H2 profitability." Looking further ahead, the sales and adjusted EBIT forecasts for 2027 were cut by 3% and 10%, respectively, while the EPS estimate was lowered by 11.5% to 7.43 euros. AlphaValue/Baader Europe has a reduce rating on the stock, with a price target of 64.9 euros.