Alten: Stifel downgrades stock
(CercleFinance.com) - Stifel downgrades its recommendation on Alten from 'buy' to 'hold', with a target price slashed from E130 to E80, expecting momentum to remain negative for some time.
It seems to us that Alten is constantly reducing its revenue forecasts. Now we are at a point where sales could decline for the fourth quarter with no clear growth catalyst likely to emerge in 2025, in our view, the broker says.
While maintaining gross margin and managing fixed costs have become the group's main priority, and although Alten's margins are already low, Stifel believes that further erosion 'cannot be ruled out'.
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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
It seems to us that Alten is constantly reducing its revenue forecasts. Now we are at a point where sales could decline for the fourth quarter with no clear growth catalyst likely to emerge in 2025, in our view, the broker says.
While maintaining gross margin and managing fixed costs have become the group's main priority, and although Alten's margins are already low, Stifel believes that further erosion 'cannot be ruled out'.
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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.