Alstom: Oddo confirms rating
(CercleFinance.com) - Alstom has obtained all the necessary regulatory approvals to complete the acquisition of Bombardier Transportation (BT), enabling the deal to be closed on 29 January 2021.
Oddo says that in the medium term, BT is targeting a 'normalised' margin of around 7%, which the company had even recently exceeded. In 2021 it believes that an adjusted EBIT margin of 2% could be realistic, followed by 4% in 2022. BT could approach 7% in 2024 or 2025, analysts say.
BT's turnaround, combined with targeted synergies of 400 million euros (after 4-5 years) enables us to forecast an average annual growth in operating results of 40%e between 2020 pro-forma and 2024e, the broker adds.
Oddo confirms its buy rating on the stock, with a target price of 52 euros (14% upside potential).
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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.
Oddo says that in the medium term, BT is targeting a 'normalised' margin of around 7%, which the company had even recently exceeded. In 2021 it believes that an adjusted EBIT margin of 2% could be realistic, followed by 4% in 2022. BT could approach 7% in 2024 or 2025, analysts say.
BT's turnaround, combined with targeted synergies of 400 million euros (after 4-5 years) enables us to forecast an average annual growth in operating results of 40%e between 2020 pro-forma and 2024e, the broker adds.
Oddo confirms its buy rating on the stock, with a target price of 52 euros (14% upside potential).
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.