Alstom: UBS still a buyer, despite Commission veto
(CercleFinance.com) - This morning UBS confirms its buy rating on the Alstom stock, the day after the Commission blocked the group's planned merger with another European railway giant, Siemens Mobility.
The broker maintains its 12-month target price of 48 euros, meaning
upside potential of over 25%.
UBS notes that the Alstom share price rose by a few percent both before
and after the Commission announced its verdict, even though the
consensus had already priced in Brussels' veto.
"We believe this signals a reversal of the negative sentiment that had
distracted from fundamentals, pushing Alstom shares to unjustifiably low levels," UBS argues.
Now that the event has passed, a major issue has been lifted and "Despite the outcome, Alstom stock sentiment should stabilise," UBS said.
Copyright (c) 2019 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.
The broker maintains its 12-month target price of 48 euros, meaning
upside potential of over 25%.
UBS notes that the Alstom share price rose by a few percent both before
and after the Commission announced its verdict, even though the
consensus had already priced in Brussels' veto.
"We believe this signals a reversal of the negative sentiment that had
distracted from fundamentals, pushing Alstom shares to unjustifiably low levels," UBS argues.
Now that the event has passed, a major issue has been lifted and "Despite the outcome, Alstom stock sentiment should stabilise," UBS said.
Copyright (c) 2019 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.