Morgan Stanley upgrades Continental stock to Overweight

Published on 10/07/2026 at 09:24 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Adjusted EBIT reached EUR 570 million in Q2 2026 at a 12.90 percent margin. Continental stock costs EUR 71.09 on October 7, 2026, versus EUR 70.57.

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Continental (ISIN DE0005439004) stock was trading at EUR 71.09 at Lang & Schwarz on October 7, 2026 at 9:19 a.m. CEST, up 0.74 percent from the EUR 70.57 prior close. The latest analyst signal came on October 5, 2026, when Morgan Stanley upgraded Continental to Overweight and raised its price target from EUR 62.00 to EUR 78.00, according to stock3.

Morgan Stanley lifts the target

The new EUR 78.00 target stands 9.72 percent above the Lang & Schwarz price of EUR 71.09. Morgan Stanley linked its view to margin potential in the Americas, stronger truck-tire volumes and the prospect of shareholder distributions after Continental completes its transformation into a tire-focused group, the stock3 report said.

The target move follows a separate JPMorgan view dated October 5, 2026. JPMorgan kept an Overweight rating and a EUR 78.00 target, while expecting Continental's margin at the upper end of its range, according to finanzen.at.

Q2 margin gives the thesis substance

Continental reported adjusted EBIT of EUR 570 million and an adjusted EBIT margin of 12.90 percent in the second quarter of 2026. The margin improved from 9.60 percent in the second quarter of 2025, while the Tires business reached a 15.30 percent adjusted EBIT margin, according to the Q2 earnings call transcript published by Yahoo Finance.

Management confirmed a 2026 outlook for continuing operations of EUR 13.20 billion to EUR 14.20 billion in sales and a 12.00 percent to 13.50 percent adjusted EBIT margin. The same call described second-quarter Tires volume growth of minus 2.30 percent and a positive 2.60 percent price-mix effect, making mix and cost control central to the investment case.

Continental's investor calendar lists the next quarterly results for November 4, 2026, on its Continental investor-relations page.

Stock remains below the yearly high

At EUR 71.09, the Lang & Schwarz price stood EUR 6.41 below the 52-week high of EUR 77.50, while the market capitalization was EUR 14.1 billion as of October 7, 2026. That valuation leaves the analyst targets dependent on the promised margin resilience and on execution during the shift toward a pure-play tire business.

The further course of trading is shown by the continuously updated real-time quote of Continental stock.