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Alstom: SG remains optimistic before interim results.

(CercleFinance.com) - Société Générale (SG) has reviewed the Alstom stock, which will publish its interim accounts for its non-calendar fiscal year, on 14 November.

SG expects a slowdown in orders in Q2, although growth in sales and margins in the first half, with the broker confirming its buy rating on the stock, with a 12-month target price of 41 euros.

Indeed, the Alstom case remains dominated by the planned merger with Siemens Mobility, which SG says is “unlikely to be completed until 2H18, pending approvals by all of the relevant authorities.”

Meanwhile, the market should focus on Alstom's publications. What is to be expected from H1 2017/2018 next week? Admittedly, after a high volume of orders in the first quarter (Q1; 1.91 billion euros), the trend should be less favourable in the second quarter of the year (Q2; 750 million euros in new orders, SG expects) and therefore "a return of this indicator to a 'normal' level". The group's overall order backlog should be around 33 billion euros.

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