Altran: Invest Securities reduces its price target
(CercleFinance.com) - Analyst Invest Securities today announces that it has lowered its price target on the Altran share from 12.
60 to 8.30 euros.
“The share suffered a significant jolt on Friday (-28.2%) following the revelation of fictitious purchase orders with Aricent for $10m and a warning on the 2018 margin from the American company. This reaction does not seem exaggerated to us considering the many issues with this account”, estimates Invest Securities.
“Aricent is not undergoing organic growth and has a achieved a margin far below that of the published figures, which forces Altran to change its approach and launch a cost-cutting plan, all the while bringing its debt leverage to very high levels (4.2x estimated EBITDA at the end of the first half of 2018). We recommend staying away”.
The neutral recommendation is therefore maintained on the share by Invest Securities.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
60 to 8.30 euros.
“The share suffered a significant jolt on Friday (-28.2%) following the revelation of fictitious purchase orders with Aricent for $10m and a warning on the 2018 margin from the American company. This reaction does not seem exaggerated to us considering the many issues with this account”, estimates Invest Securities.
“Aricent is not undergoing organic growth and has a achieved a margin far below that of the published figures, which forces Altran to change its approach and launch a cost-cutting plan, all the while bringing its debt leverage to very high levels (4.2x estimated EBITDA at the end of the first half of 2018). We recommend staying away”.
The neutral recommendation is therefore maintained on the share by Invest Securities.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.