2023-03-19 05:46:38 ET
Summary
- The new auto margin guide is positive, but there are still uncertainties in the market, and CTTAF's execution over the past few years has been inconsistent.
- The tire business of CTTAF has a more realistic chance of achieving its margin outlook, with potential benefits from lower material and logistics costs, as well as an increase in replacement sales after inventory normalization in Q1.
- The long-term story for CTTAF remains unclear, especially regarding the success of its high-growth areas, and investors should be cautious until there is more progress.
For further details see:
Continental: Lots Of Uncertainty For This Stock