Alstom: Stifel starts tracking with 'hold' rating
(CercleFinance.com) - Stifel said on Tuesday that it is beginning to monitor Alstom shares with a "hold" rating and a target price of 23 euros.
In a report on the European transport sector, the broker believes that the market is currently overconfident about the rail equipment manufacturer's performance, even though the stock is currently trading at its lowest valuation multiples for two years.
As such, the broker's forecasts for 2025/2026 are 9% below the consensus.
Stifel says that the synergies from the merger with Bombardier will materialise late, which means that the Canadian company will continue to weigh on its profit margins for some time.
The broker also has doubts about the group's target of converting net profit into free cash flow at a rate of over 80%, believing that the forecast of lower capex is not credible at this stage.
Copyright (c) 2022 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.
In a report on the European transport sector, the broker believes that the market is currently overconfident about the rail equipment manufacturer's performance, even though the stock is currently trading at its lowest valuation multiples for two years.
As such, the broker's forecasts for 2025/2026 are 9% below the consensus.
Stifel says that the synergies from the merger with Bombardier will materialise late, which means that the Canadian company will continue to weigh on its profit margins for some time.
The broker also has doubts about the group's target of converting net profit into free cash flow at a rate of over 80%, believing that the forecast of lower capex is not credible at this stage.
Copyright (c) 2022 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.