J.P. Morgan: Mainland group investors may lower profit expectations

Morgan Stanley analysts write that investors in Continental AG may have a cautious outlook on the company's prospects and may lower profit expectations by a low single-digit percentage. The current average expectation is that the Group's EBIT will increase by approximately 100 million euros this year. Morgan Stanley believes this should be achievable, but adds that, given the slow start to the year, the market may remain cautious. The company's new 2026 forecast includes a wide range of adjusted EBIT. Nevertheless, Continental AG is still seeking year-over-year growth in EBIT, and Morgan Stanley states that the lower limit of this expected range will be excluded. However, the bank notes that excluding one-off items, cash flow guidance is strong. The stock fell 1.9%.