Alstom: Invest Securities downgrades stock
(CercleFinance.com) - Invest Securities has downgraded its rating on the Alstom share from "neutral" to "sell," while nuding up its corresponding target price from 39.
5 euros to 40.2 euros (current price just under 50 euros), after its 4.6% increase, which the broker says brings the share's valuation to a three-year peak with multiples that have become very demanding.
Whilst the group's Q1 publication was not as bad as expected, the broker warns that the impact of the decline in quarterly sales on its 2020/21 EBITA margin and free cash flow should be more severe than expected.
This is leading the broker to reduce its 2020-21/23 EPS estimates by -7%/-3%/-5.7% respectively, adds the analyst, specifying that these include - as from 2021/22 - the estimated results of Bombardier, which have also been reduced.
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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.
5 euros to 40.2 euros (current price just under 50 euros), after its 4.6% increase, which the broker says brings the share's valuation to a three-year peak with multiples that have become very demanding.
Whilst the group's Q1 publication was not as bad as expected, the broker warns that the impact of the decline in quarterly sales on its 2020/21 EBITA margin and free cash flow should be more severe than expected.
This is leading the broker to reduce its 2020-21/23 EPS estimates by -7%/-3%/-5.7% respectively, adds the analyst, specifying that these include - as from 2021/22 - the estimated results of Bombardier, which have also been reduced.
Copyright (c) 2020 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.