Alstom: Morgan Stanley downgrades stock

(CercleFinance.com) - On Wednesday Morgan Stanley downgraded its rating on Alstom shares from "overweight" to "equal weight", believing that it is time to take a break on the stock.


The rail sector has a lot to offer, the analyst acknowledges in comments. However, we should not ignore its cyclical nature, it adds.

Morgan Stanley explains that it would not be surprised to see the group's growth slow down, despite its comfortable order book of 108 billion euros over the next 18 months.

While it believes that concerns about the company's financial situation are largely exaggerated, the broker prefers to reduce its target price for the stock from 35 euros to 30 euros.


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