On Monday, Citi maintained a Buy rating on Continental AG (CONG:GR) (OTC: OTC:CTTAY) with a price target of EUR87.00. The announcement comes as the company's Chief Financial Officer (CFO) disclosed her intention to leave the company after her contract concludes in December 2024 to explore new opportunities.
The CFO's departure was unexpected, but the impact on the company's turnaround efforts is expected to be limited. She will remain in her current role until a successor is appointed, ensuring continuity in the company's financial leadership.
The company's auto-tech margin expansion and turnaround strategy are primarily driven by the auto-tech CEO, Philipp Von Hirschheydt, whose contract runs until 2026.
Additionally, CEO Nikolai has recently extended his contract through 2029, further solidifying the management team's stability during this critical period. The search for a new CFO is underway, and the capital markets may react favorably to a successor with expertise in automotive electronics, given the importance of auto margin recovery to Continental's financial performance.
The company has yet to release details of its succession plan, but the current CFO's commitment to stay until the end of her term provides Continental AG with ample time to find a suitable replacement. This transition period is crucial as the company continues to focus on its turnaround story, led by key executives whose contracts extend well into the future.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.