Altran: Invest Securities downgrades to 'sell'
(CercleFinance.com) - In a report published this morning, Invest Securities announced that it is downgrading its rating on Altran from "neutral" to "sell," with a leverage level that is becoming worrying.
The highlight of the group's H1 2018 publication is that cash generation has come in well below expectations (-E154m vs. +E1m expected) and other cash impacts that are bringing Altran's ND/EBITDA to 4.8x according to the broker's methodology. While the group's operating performance is disappointing - especially at Aricent - which may give rise to fears of future downgrades, the company's leeway is falling, Invest Securities says.
In addition, the analyst has reduced its target price for the share from 8.3 euros to 7.3 euros.
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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.
The highlight of the group's H1 2018 publication is that cash generation has come in well below expectations (-E154m vs. +E1m expected) and other cash impacts that are bringing Altran's ND/EBITDA to 4.8x according to the broker's methodology. While the group's operating performance is disappointing - especially at Aricent - which may give rise to fears of future downgrades, the company's leeway is falling, Invest Securities says.
In addition, the analyst has reduced its target price for the share from 8.3 euros to 7.3 euros.
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.