Alstom: still a buyer, UBS targets 48 euros
(CercleFinance.com) - UBS confirms its buy rating on the Alstom share this morning after the group sold its shares in the energy joint ventures.
The broker maintains its 12-month target price at 48 euros, which represents upside potential of around 25%.
The railway equipment supplier, which is in the process of merging with the German group Siemens Mobility, has now transferred its interests in these "energy" joint ventures, the remainder of its electric turbine business, to General Electric. As expected, it has raised 2.6 billion euros therefrom, which will be used to finance its development strategy, as well as pay exceptional dividends to its shareholders (up to four euros per share on two occasions).
UBS points out that the European Commission has yet to decide on the merger by the end of January 2019, before it is finalised.
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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 maintains its 12-month target price at 48 euros, which represents upside potential of around 25%.
The railway equipment supplier, which is in the process of merging with the German group Siemens Mobility, has now transferred its interests in these "energy" joint ventures, the remainder of its electric turbine business, to General Electric. As expected, it has raised 2.6 billion euros therefrom, which will be used to finance its development strategy, as well as pay exceptional dividends to its shareholders (up to four euros per share on two occasions).
UBS points out that the European Commission has yet to decide on the merger by the end of January 2019, before it is finalised.
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.