Continental's agreement to sell ContiTech has come in at the top end of the 3.5 billion-euro to 4 billion-euro range that was expected, JPMorgan analysts Jose M Asumendi and Piyush Singla write. The company has agreed to sell the unit to Lone Star Funds at an agreed enterprise value of 4 billion euros plus a potential performance-based component of up to 250 million euros in subsequent years. JPMorgan sees it as a positive step for investors, further focusing the group's attention on the tire division, allowing the stock's multiple to rerate as it delivers higher margins over the next 12 months. The bank rates Continental stock at overweight with a 78 euro price target. Shares fall 1.4% to 74.94 euros. (dominic.chopping@wsj.com)