Continental sees a 17% chance for growth.
The Continental stock has faced downward pressure for several months, yet some analysts have had positive comments about it. Despite the falling stock price, investors can receive high returns thanks to bonus certificates from Cap.
The beginning of 2024 was not good for the auto supplier Continental, as their stock price fell from 78.40 euros - its 12-month high on January 2nd - to just slightly above its 12-month low of 58.20 euros from October 2023, with a current price of 61.30 euros.
Despite the usual slump in the first quarter, experts maintained their buy or hold recommendations for the Continental stock due to the company's stable outlook and maximum price targets of up to 100 euros (from JP Morgan Chase).
The Investment Idea
For those who are willing to take risks and want to profit from the undervalued Continental stock while also reducing the risks associated with direct stock investment, now could be an opportune time to invest in attractive bonus certificates with caps.
Bonus certificates with caps not only offer the potential for high returns as the price of the Continental stock rises, but also as it remains steady or even declines. However, investors will lose the opportunity for unlimited profit and receive no dividend payments.
How it works
If the Continental stock doesn't hit the 44.00 euros barrier by the bonus certificate's maturity date, the BNP Paribas bonus certificate with cap (ISIN: DE000PG1EAM9) will be redeemed on June 26, 2025, for a bonus amount of 80.00 euros.
The important details
For the bonus certificate with cap on the Continental stock from BNP Paribas, the bonus level is 80.00 euros, and the cap is set at 68.60 euros. The active barrier remains in place until the valuation date of June 20, 2025. Investors can currently purchase the certificate for 68.60 euros.
The possibilities
Since investors can now buy the certificate for 68.60 euros, they can earn a gross return of 16.62% (compounded annually) by June 2025 if the stock price of the Continental stock doesn't fall more than 28.22% to 44.00 euros or lower than the cap (68.60 euros) by the valuation date.
The risks
If the Continental stock touches the 44.00 euros barrier by the valuation date and the stock price is below the cap (68.60 euros) at that time, the certificate will be redeemed with the closing price of the Continental stock as of that date. If this price is below 68.60 euros, the investors will suffer a loss.
This article is not a recommendation to buy or sell Continental stocks or investment products based on Continental stocks. No liability is assumed for the accuracy of the data.
