MS ups Continental on earnings improvement potential

By Reuters News

** Morgan Stanley upgrades Continental CONG.DE to "overweight" from "equal-weight"

** Cites overlooked earnings prospects after the planned spin-off of its rubber and plastic division ContiTech

** The broker sees scope for a re-rating as Continental trades at a discount to major tyre peers

** It also notes the company is committed to shareholder returns

** The broker increases its PT by 26% to €78

** Out of 17 analysts that cover Continental, 10 rate the stock "strong buy" or "buy", ​6 rate "hold" and 1 rates it "sell" — LSEG data

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