Alstom: Oddo BHF confirms buy rating

(CercleFinance.com) - Oddo BHF has confirmed its buy rating on the Alstom stock, despite the Commission's veto of its plans to merge with Siemens Mobility.


The broker's target price of 42.5 euros gives the stock upside potential of over 15%.

Alstom alone is a leading group, number 3 worldwide in terms of size, with sales of nearly 8.2 billion euros in March 2019, meaning a market share of about 7.5%. The market is growing steadily, including in Europe, while its fragmented nature enables us to forecast other stages of consolidation, the broker says in its research note.

Alstom's order intake is close to a record 40 billion euros, which is a good argument for continued growth, coupled with improved margins. In addition, and even without the dividends expected by the merger, Alstom's shareholders will probably be entitled to another cash return that we estimate at a potential of 6 or 7 euros per share, i.e. 1.3 billion-1.5 billion euros. Analysts believe that Bouygues would be in favour of such a measure, the broker said.



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