Continental up more than 10% after Citi sees margins improve in Q2
July 4 (Reuters) -Shares in German auto parts maker Continental CONG.DE rose 10.7% on Thursday after Citi upgraded the company to "buy", saying it sees upside potential for the company's automotive and tire units.
The broker updated its rating after Continental's pre-close call on Wednesday. It pointed to a potential margin improvement to about 4% in the auto-tech division in the second quarter, up from -4% in Q1, mainly driven by cost cuts and price increases.
Citi added that positive timing effects on volumes as well as favourable raw material conditions will also support Continental's tire division.
Brokerage JP Morgan also said it expects margins in the automotive business to improve in the second quarter, leaving its rating at "overweight".
Reporting by Chiara Holzhaeuser
Editing by Madeline Chambers
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