Alstom: Invest Securities neutral, pending Commission ruling

(CercleFinance.com) - This morning Parisian broker Invest Securities has maintained its "neutral" rating on the Alstom share, while cutting its target price from 41.
7 euros to 37.3 euros (-10.6%).
This gives the stock upside potential of under 10%.

Indeed, the French rail equipment supplier provided a quarterly trading update that included growth that remains strong, along with record orders and forecasts that have been confirmed.

However, investors are holding their breath, pending the decision that the European Commission will make by 18 February on the group's planned merger with Siemens Mobility. Invest Securities said that in this frustrating context, Alstom admits that the Commission's authorisation is not a given, which explains the share price's bearish trend.

However, at present analysts still believe in the case: the broker's report says that it is maintaining its estimates which incorporate the assumption that the Alstom-Siemens merger will go ahead on 1 April 2019. Even so, they remain cautious on the matter.



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.