Alstom: Stifel still on hold
(CercleFinance.com) - Stifel confirms its Hold rating and target price of E22 for Alstom shares, after reducing its outlook for the group.
The analyst points out that it has published preliminary H1 results that which do not match Visible Alpha's (VAe) estimates for orders, sales or margins, although worse still, they have reported an FCF outflow of -E1,150m against VAe's figure of "just" -E152m.
"According to the company, about half of the outflow was caused by a strong increase in inventories that wasn't followed by an equally strong increase in production. Another 30% of the outflow is explained by delays in the UK Aventra program while the remainder was caused by lower than expected order intake," Stifel says.
Stifel also points out that sales amounted to E8.3bn, i.e. -2.4% below an VAe of around E8.5bn, while orders of E8.4bn were -8.7% below the VAe of around E9.2bn.
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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 analyst points out that it has published preliminary H1 results that which do not match Visible Alpha's (VAe) estimates for orders, sales or margins, although worse still, they have reported an FCF outflow of -E1,150m against VAe's figure of "just" -E152m.
"According to the company, about half of the outflow was caused by a strong increase in inventories that wasn't followed by an equally strong increase in production. Another 30% of the outflow is explained by delays in the UK Aventra program while the remainder was caused by lower than expected order intake," Stifel says.
Stifel also points out that sales amounted to E8.3bn, i.e. -2.4% below an VAe of around E8.5bn, while orders of E8.4bn were -8.7% below the VAe of around E9.2bn.
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.