Since Continental’s Q2 23 results had already been pre-released, the focus was on the FY23 guidance update. The group mainly confirmed what the market was already pricing following peers’ publications: a weakening tyre market triggering a cut to the revenue target and a raised auto production expectation supporting the Automotive division guidance. The latter looks supportive for the Conti’ equity story, which overwhelmingly relies on the growth of auto supplier activity.
