Alstom: Oddo BHF confirms outperform rating
(CercleFinance.com) - Oddo BHF confirms its "outperform" rating on Alstom shares, with an unchanged target price of E32.
The broker reports that Moody's has confirmed its Baa3 rating on Alstom, while adopting a negative outlook, reflecting Alstom's very limited leeway in the Baa3 category.
Oddo BHF understands that Moody's seems prepared to give Alstom a few more months to restore its balance sheet, provided that the latter rapidly proceeds with disposals (Chinese JVs, US freight signalling business, etc.).
Given the current pressure on Alstom (notably on the stockmarket - and now on credit), Oddo BHF expects the Group to react quickly and present a plan to strengthen its balance sheet.
In addition to possible divestments, Alstom could consider other measures (entry of a long-term shareholder, convertible bond, etc.).
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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 reports that Moody's has confirmed its Baa3 rating on Alstom, while adopting a negative outlook, reflecting Alstom's very limited leeway in the Baa3 category.
Oddo BHF understands that Moody's seems prepared to give Alstom a few more months to restore its balance sheet, provided that the latter rapidly proceeds with disposals (Chinese JVs, US freight signalling business, etc.).
Given the current pressure on Alstom (notably on the stockmarket - and now on credit), Oddo BHF expects the Group to react quickly and present a plan to strengthen its balance sheet.
In addition to possible divestments, Alstom could consider other measures (entry of a long-term shareholder, convertible bond, etc.).
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.