Conti Outperforms

Analysts, Goldman Sachs, have set Conti’s shares to ‘outperform.’ The “fair value” of the company’s shares is 70 euros, according to analysts, who expect the tyre manufacturer to improve its profit by 45 per cent in the next two years due to improvements in cost structures and its dominance in the fast growing ESC sector (electronic stability control). The analysts also report an improved performance by Conti in its tyre business and say that the manufacturer is not as dependent on raw material prices as its competitors. Profit per share is expected to reach 4.25 euros this year, increasing to 5.45 in 2006