Alstom: Invest Securities still a buyer.
(CercleFinance.com) - In a report issued on Monday morning, Invest Securities confirmed its "buy" rating on Alstom, as well as its target price of 35 euros, with the group confirming on Friday that it is in talks with Siemens Mobility to merge their businesses.
"According to the terms of the deal, which were partially disclosed by Le Monde and resumed by les Echos today, the implied valuation for Alstom could be between 35 euros and 48 euros per share, depending on whether Siemens obtains between 45% and 55% of Altstom's capital in exchange for Siemens Mobility valued at 7 billion euros,” the broker says.
The broker also calculated that the new group would have target sales of 17 billion euros, with EBITA of 1.7 billion euros under the assumption of synergies that have not been disclosed yet, but that Invest Securities estimates at 2% of sales, i.e. 350 million 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.
"According to the terms of the deal, which were partially disclosed by Le Monde and resumed by les Echos today, the implied valuation for Alstom could be between 35 euros and 48 euros per share, depending on whether Siemens obtains between 45% and 55% of Altstom's capital in exchange for Siemens Mobility valued at 7 billion euros,” the broker says.
The broker also calculated that the new group would have target sales of 17 billion euros, with EBITA of 1.7 billion euros under the assumption of synergies that have not been disclosed yet, but that Invest Securities estimates at 2% of sales, i.e. 350 million euros.
Copyright (c) 2017 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.