Alstom: stock dives after big disappointment on FCF
(CercleFinance.com) - Alstom shares are diving 35% today on the heels of a very disappointing free cash flow report for H1 2023-24, which was a big negative at -E1.
15bn, a huge billion euros below the consensus, Oddo BHF says.
Alstom has revised its 2023/24 FCF target downwards, and now expects FCF of between -500m and -750m euros, compared with the "significantly positive" figure previously forecast (consensus +E313m), the analyst points out.
Oddo BHF says that it has to admit that this is a major warning - and it's not the first - and it casts doubt on the group's ability to generate FCF over the long term.
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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.
15bn, a huge billion euros below the consensus, Oddo BHF says.
Alstom has revised its 2023/24 FCF target downwards, and now expects FCF of between -500m and -750m euros, compared with the "significantly positive" figure previously forecast (consensus +E313m), the analyst points out.
Oddo BHF says that it has to admit that this is a major warning - and it's not the first - and it casts doubt on the group's ability to generate FCF over the long term.
Copyright (c) 2023 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.