By Chloe Taylor
Copyright cnbc
On Thursday, the company’s newly spun-off automotive division began trading in Frankfurt as Aumovio, with shares of the new firm extending gains on Friday with a jump of 5%.
“We have a very disruptive environment, so we need to see of how do we react very quickly to the different demands in the market, and that’s why it’s significantly better to have focused companies dealing with their respective challenges,” Philipp von Hirschheydt, CEO of Aumovio, told CNBC on Thursday.
Despite the move, Deutsche Bank slashed its target price for Continental by 21% on Friday morning.
“Factoring in the spin-off, modest forecast revisions, and higher peer multiples for ContiTech, we revise our target price to EUR63 [$74],” Deutsche Bank’s Christoph Laskawi said in a note. “Thanks to a strong first trading day of RemainCo, there is only about 10% upside left to our target price and hence we confirm our Hold rating.”
On the data front, trader will be watching German PPI data, a U.K. retail sales print and a French business confidence update on Friday.
In the U.K., data out Friday showed that government borrowing surged in recent months, with public sector rising by £11.4 billion ($15.4 billion) more than projected between April and August. It marked the second-highest public sector borrowing for that period since records began in 1993, with only 2020 — the height of the Covid-19 pandemic — notching a higher April to August borrowing bill.
U.K. government borrowing costs rose in the wake of the data release, with the yield on longer-maturity 20 and 30-year gilts adding 4 and 5 basis points, respectively.
Overnight in Asia, stocks traded mostly higher, with investors reacting to the Bank of Japan making no changes to interest rates. On Wall Street, U.S. stock futures were flat after the major averages hit fresh all-time highs on Thursday.
