Alstom: still a buyer, Oddo BHF raises target price
(CercleFinance.com) - Oddo BHF is more optimistic about the French rail equipment supplier Alstom, which is set to merge with Siemens Mobility this year.
Maintaining its buy rating on the stock, analysts, who note that the group is on track after its recent roadshow, have raised their target price from 45 euros to 47 euros, representing upside potential of 15%.
From its exchanges with Henri Poupart-Lafarge, head of Alstom and future CEO of Siemens Alstom, Oddo BHF retains that market demand is considered sound. This is particularly so, as the Chinese giant CRRC remains - at least for the moment - focused on its domestic market.
The schedule for the merger between Siemens Mobility and Alstom has been confirmed, as have expected synergies. In short, the broker gets the overall impression that both partners are in shape and have the means to achieve many projects and make significant progress after the merger is completed, analysts conclude.
In addition, Alstom has a strong outlook over 2018-2019, Oddo BHF adds in its report. As a result, it has raised its forecasts, and hence target price for the share.
Copyright (c) 2018 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.
Maintaining its buy rating on the stock, analysts, who note that the group is on track after its recent roadshow, have raised their target price from 45 euros to 47 euros, representing upside potential of 15%.
From its exchanges with Henri Poupart-Lafarge, head of Alstom and future CEO of Siemens Alstom, Oddo BHF retains that market demand is considered sound. This is particularly so, as the Chinese giant CRRC remains - at least for the moment - focused on its domestic market.
The schedule for the merger between Siemens Mobility and Alstom has been confirmed, as have expected synergies. In short, the broker gets the overall impression that both partners are in shape and have the means to achieve many projects and make significant progress after the merger is completed, analysts conclude.
In addition, Alstom has a strong outlook over 2018-2019, Oddo BHF adds in its report. As a result, it has raised its forecasts, and hence target price for the share.
Copyright (c) 2018 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.