Alstom: Oddo BHF remains positive but reduces TP
(CercleFinance.com) - Oddo BHF has confirmed its "outperform" rating on Alstom shares, while lowering its target price for them from E24 to E22, taking into account the recent capital increase and debt reduction by the transport equipment manufacturer.
Now that the balance sheet has been restored to health, many investors still have two questions: is the recovery in gross margin (and its impact on EBIT) sustainable, and is the group capable of generating solid FCF over a full cycle?
The broker expects an adjusted EBIT margin of 8.5% in 2026/27 and a FCF/net profit ratio of 60% over three years on average, sufficient, in its view, to enable the share to continue rerating in an environment that is still buoyant.
Copyright (c) 2024 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.
Now that the balance sheet has been restored to health, many investors still have two questions: is the recovery in gross margin (and its impact on EBIT) sustainable, and is the group capable of generating solid FCF over a full cycle?
The broker expects an adjusted EBIT margin of 8.5% in 2026/27 and a FCF/net profit ratio of 60% over three years on average, sufficient, in its view, to enable the share to continue rerating in an environment that is still buoyant.
Copyright (c) 2024 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.