Alstom: still a buyer, Oddo BHF raises target price
(CercleFinance.com) - In reaction to the group's accounts recently published by the railway equipment supplier Alstom, broker Oddo BHF has confirmed its buy rating on the stock.
It has also raised its corresponding target price for the share from 42.5 euros to 44.5 euros, representing upside potential of 13.5%.
The broker's research note highlights the group's strong growth, improvements in its operating margin and its historic backlog of 40.5 billion euros. Oddo also points out the payment of a large dividend of 5.50 euros (therefore meaning a big return of... 14%), while the group, which in the end will not merge with Siemens Mobility, still has a very positive net cash position.
Oddo BHF also underlines confidence shown by the management. Alstom is well positioned against its competitors and is effectively investing in differentiating technologies, it says in a note. Analysts have raised their forecasts, with the record backlog, and this justifies their increased target price.
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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.
It has also raised its corresponding target price for the share from 42.5 euros to 44.5 euros, representing upside potential of 13.5%.
The broker's research note highlights the group's strong growth, improvements in its operating margin and its historic backlog of 40.5 billion euros. Oddo also points out the payment of a large dividend of 5.50 euros (therefore meaning a big return of... 14%), while the group, which in the end will not merge with Siemens Mobility, still has a very positive net cash position.
Oddo BHF also underlines confidence shown by the management. Alstom is well positioned against its competitors and is effectively investing in differentiating technologies, it says in a note. Analysts have raised their forecasts, with the record backlog, and this justifies their increased target price.
Copyright (c) 2019 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.