Barclays upgraded Germany's Continental to overweight with €72 price target amid sector cost shock expectations.
Michelin lifted to equal weight from underweight, target €30, citing strong pricing power to offset raw material spikes.
Barclays warned sector could face 15‑20% cost increase in 2026, maintaining negative overall view despite selective overweight ratings.
Overweight on Aumovio (€55) and Forvia (€14); underweight Gestamp (€2.5) and equal weight Valeo (€11) due to margin pressures.