(CercleFinance.com) – BofA reiterated its ‘underperformance’ opinion on Alstom stock on Friday, with a price target lowered from 17 to 16 euros.
After looking carefully at the railway equipment manufacturer’s 2021 annual results, the broker says it has seen no sign of improvement in its fundamentals, but rather noticed a deterioration in certain indicators.
“The balance sheet appears stretched from a number of factors, the prospects for improving margins and free cash flow seem limited in the short term and the file lacks visibility over the medium term”, explains the broker. American in a note.
BofA adds that it does not find more convincing elements in terms of valuation, notably judging the consensus for 2025 far too optimistic.
At current price levels, his price target shows more than 30% downside potential.
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