Continental's Sale of MyCar Tyre & Auto Should Support Margins
Dow Jones
Sep 25
0931 GMT - Continental's sale of MyCar Tyre & Auto should lift group margins given the Australian tire and automotive retail business operated below the company average, Citi analysts write. The German tire maker sold MyCar Tyre & Auto to Tuhu at an enterprise value of $403 million and Citi doesn't expect any material tax or transaction cost impact. The deal will probably reduce group revenues by 200 million-250 million euros, all from the APAC region. "These steps further exemplify Conti's strategy to simplify the business and improve capital allocation discipline." The bank reiterates its buy rating and 80 euro target price on the stock. Shares rise 0.5% to 69.54 euros.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.