Alstom: Oddo BHF remains positive, reduces its target

(CercleFinance.com) - Oddo BHF reaffirms its 'outperform' rating on Alstom, while lowering its price target from €24 to €22, taking into account the recent capital increase and the deleveraging of the transportation equipment manufacturer.


'Now that the balance sheet has been cleaned up, two questions remain for many investors: is the recovery in gross margin (and its impact on EBIT) sustainable, and is this group capable of generating solid FCF over a full cycle?

The research department anticipates an adjusted EBIT margin of 8.5% in 2026/27 and a FCF/net income of 60% on average over three years, sufficient, in its view, to 'enable the share to continue rerating in a still buoyant environment'.

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