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On Monday, Citi maintained a Purchase ranking on Continental AG (CONG:GR) (OTC: OTC:) with a value goal of EUR87.00. The announcement comes as the corporate’s Chief Monetary Officer (CFO) disclosed her intention to go away the corporate after her contract concludes in December 2024 to discover new alternatives.
The CFO’s departure was surprising, however the influence on the corporate’s turnaround efforts is anticipated to be restricted. She is going to stay in her present position till a successor is appointed, guaranteeing continuity within the firm’s monetary management.
The corporate’s auto-tech margin growth and turnaround technique are primarily pushed by the auto-tech CEO, Philipp Von Hirschheydt, whose contract runs till 2026.
Moreover, CEO Nikolai has lately prolonged his contract by 2029, additional solidifying the administration group’s stability throughout this important interval. The seek for a brand new CFO is underway, and the capital markets might react favorably to a successor with experience in automotive electronics, given the significance of auto margin restoration to Continental’s monetary efficiency.
The corporate has but to launch particulars of its succession plan, however the present CFO’s dedication to remain till the tip of her time period gives Continental AG with ample time to discover a appropriate substitute. This transition interval is essential as the corporate continues to deal with its turnaround story, led by key executives whose contracts lengthen effectively into the long run.
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