Alstom: UBS still targets 43 euros ahead of merger
(CercleFinance.com) - UBS has confirmed its buy rating on French railway equipment supplier Alstom, considering that its merger with the Mobility division of German conglomerate Siemens is a good move.
The broker also maintains its 12-month target price of 43 euros for the stock.
Analysts' main argument comes from the annual report (the "10K", according to SEC terms) published by the American giant General Electric (GE): this document states that in January, Alstom confirmed its intention to exercise its put options on minority shares in energy joint ventures in September 2018, the remainder of the sale to GE of most of Alstom's energy business. Amount considered: 2.5 billion euros, by both partners. This will contribute towards the dividend payments announced by Alstom at the time of the merger.
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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 broker also maintains its 12-month target price of 43 euros for the stock.
Analysts' main argument comes from the annual report (the "10K", according to SEC terms) published by the American giant General Electric (GE): this document states that in January, Alstom confirmed its intention to exercise its put options on minority shares in energy joint ventures in September 2018, the remainder of the sale to GE of most of Alstom's energy business. Amount considered: 2.5 billion euros, by both partners. This will contribute towards the dividend payments announced by Alstom at the time of the merger.
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.