Alston: Credit Suisse raises target price
(CercleFinance.com) - On Friday Credit Suisse raised its target price for the Alstom share from 37 euros to 52 euros, considering the railway equipment supplier as a "structural" winner in the development of green transport modes.
The broker - which however maintains a "neutral" rating on the share - also says its appreciates the solid visibility of the French group's order book, as well as its desire to improve its margins over the medium term.
However, Credit Suisse considers that the planned merger with the Canadian group Bombardier, as well as the level of FCF conversion are two "sources of concern".
"However, for us potentially to turn more positive, we would look for evidence of guided free cash flow improvement that is already reflected in consensus," the broker says.
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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 - which however maintains a "neutral" rating on the share - also says its appreciates the solid visibility of the French group's order book, as well as its desire to improve its margins over the medium term.
However, Credit Suisse considers that the planned merger with the Canadian group Bombardier, as well as the level of FCF conversion are two "sources of concern".
"However, for us potentially to turn more positive, we would look for evidence of guided free cash flow improvement that is already reflected in consensus," the broker says.
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.