Alstom: Siemens-Alstom is worth more, Oddo BHF says.
(CercleFinance.com) - Oddo BHF has revised its estimates, and thinks in essence that "Siemens-Alstom offers more potential" than the French railway equipment supplier alone.
Maintaining its buy rating on Alstom shares, analysts yesterday raised their target price for the stock from 35 euros to 41 euros.
The future Siemens-Alstom have about twice Alstom's turnover: 15.3 billion euros (in data for 2016), with an operating margin of 8%.
However, Alstom's operating margin was limited to 5.8% in 2016/2017. In addition, management is very optimistic, targeting a margin of between 11% and 14% in 2023. In this respect, Oddo BHF believes that the group is "implicitly" undervalued, particularly in terms of EV/EBITDA.
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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.
Maintaining its buy rating on Alstom shares, analysts yesterday raised their target price for the stock from 35 euros to 41 euros.
The future Siemens-Alstom have about twice Alstom's turnover: 15.3 billion euros (in data for 2016), with an operating margin of 8%.
However, Alstom's operating margin was limited to 5.8% in 2016/2017. In addition, management is very optimistic, targeting a margin of between 11% and 14% in 2023. In this respect, Oddo BHF believes that the group is "implicitly" undervalued, particularly in terms of EV/EBITDA.
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.