Alstom: encouraging prospects, Oddo stays on buy
(CercleFinance.com) - After the severe impact of the pandemic in the first quarter of the financial year (with a 25% slump in revenue in April and June), Oddo expects a more moderate fall in the 2nd quarter (-6%), reminding that traffic is down but nobody has cancelled deliveries or orders.
The analyst estimates that revenue in the first half should reach 3.45 billion euros compared to 4.14 billion a year earlier and expects substantially lower but probably not catastrophic results, with an EBIT of 214 million euros, or a margin of 6.2%.
According to the broker, prospects are good in the 2nd quarter with a 3rd quarter close to the levels of last year, and a 4th quarter on the rise thanks to an order book estimated to be worth 40.5 million euros at the end of September.
As a consequence, Oddo remains on 'buy' with a price target of 55 euros.
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