Tyre makers better equipped to weather Middle East shocks, Barclays says

Barclays says tyre makers are better equipped to withstand disruptions from the conflict in the Middle East, whose damage can "no longer be ignored" for the European auto parts sector

The broker upgrades Continental CONG.DE to "overweight" from "equal-weight" and Michelin MICP.PA to "equal-weight" from "underweight" as tyre makers can weather the shock with pass‑through clauses and solid pricing power in replacement markets

The industry is more prepared and resilient, but renewed input cost inflation and rising macro and consumer confidence risks worsens an already fragile operating framework, the broker says

The "unwelcome shock" adds margin pressures and substantial working-capital-related downside risks to short-term cash generation, it notes

It reiterates "overweight" rating on Aumovio AMV0n.DE and Forvia FRVIA.PA, for which it sees more corporate actions in 2026 to drive shareholder returns