Morgan Stanley bullish on Continental as tyre margins and cash returns rise

Morgan Stanley has upgraded Continental to "overweight" with a raised price target of €78, citing improved tyre margins and strong cash returns following the planned sale of its ContiTech business. The brokerage expects Continental's valuation gap with peers like Michelin to narrow as it becomes a more focused tyre company, projecting significant earnings growth and a substantial return of capital to shareholders. Key drivers for margin improvement include a higher share of premium tyres, increa