Alstom: Oddo still a buyer after BCA signed
(CercleFinance.com) - Oddo has confirmed its buy rating on the Alstom stock, along with its target price of 45 euros, after the signing of the business combination agreement (BCA).
It details the exact terms of the agreement to combine Siemens' railway business with Alstom.
This firmly commits both groups and suggests that the operation will be closed by the end of December 2018.
Oddo says in its daily equity report that the rail business merger between Siemens MO and Alstom opens up attractive new opportunities for business growth, synergies and margins (EBIT +11-12% p.a.).
Here the broker sees a very attractive story of earnings growth and valuation that is still very affordable at this stage.
Both groups have also announced the first appointments to the Supervisory Board. Siemens may appoint 6 out of 11, including Roland Busch, chairman of the board.
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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.
It details the exact terms of the agreement to combine Siemens' railway business with Alstom.
This firmly commits both groups and suggests that the operation will be closed by the end of December 2018.
Oddo says in its daily equity report that the rail business merger between Siemens MO and Alstom opens up attractive new opportunities for business growth, synergies and margins (EBIT +11-12% p.a.).
Here the broker sees a very attractive story of earnings growth and valuation that is still very affordable at this stage.
Both groups have also announced the first appointments to the Supervisory Board. Siemens may appoint 6 out of 11, including Roland Busch, chairman of the board.
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.