Alten: Stifel cuts target price

(CercleFinance.com) - Stifel confirms its buy recommendation on the Alten stock, although has reduced its target price for it by about 10% to E130 (from E145).


This adjustment reflects the 8% and 11% respective reductions in the broker's 2024E and 2025E EPS estimates. Analysts now expect 2024E and 2025E EPS to vary by -5% and +11% y-o-y, respectively, they say.

Although we expect earnings momentum to remain negative through FY 2024, we are not concerned about the prospect of a return to earnings growth in the following year. The prospect of a return to earnings growth in 2025 could trigger a re-rating within six to nine calendar months' adds Stifel.

On the basis of its forward P/E, Alten is currently trading at a discount of around 30% to its peers and its ten-year historical average. As a result, we see a compelling risk/reward opportunity on 2025E, it summarises.


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