(CercleFinance.com) – Oddo maintains its ‘outperformance’ rating on Alstrom shares with an unchanged price target of 27 euros.
The broker reports that the half-year results published this morning by Alstom are ‘in line’ with expectations, revealing an organic increase in sales of 5%, to 8 billion euros and an adjusted EBITA of 397 ME, 3% above beyond expectations.
‘The real good surprise of this publication lies in the FCF, which reached -45 ME in H1, a level much better than anticipated by the consensus (-179 ME)’, indicates the analyst.
Until now, Alstom was anticipating ‘a growth in turnover of around 5%, a gradual improvement in the adjusted EBITA margin and a positive FCF’, i.e. annual objectives deemed ‘rather vague’ by Oddo.
On the occasion of its publication, Alstom specified its objectives: it is now counting on an adjusted EBITA margin of between 5.1% and 5.3% (css forecasts 5.1%) and a positive FCF between 100 ME and 300 ME (css at 145 ME, ODDO BHF at 280 ME).
‘With an online publication and a stock market price that has increased by 35% over 1 month, we would not be surprised to see profit taking today’, concludes Oddo.
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