(CercleFinance.com) – Oddo maintains its ‘outperformance’ rating on Alstom, with a price target raised from 27 to 31.8 euros.
The analysis office believes that the half-year results published yesterday by the group are ‘solid’, with in particular an adjusted EBITDA which comes out 3% above expectations. Oddo also welcomes the good visibility enjoyed by Alstom, with an order book exceeding 85 billion euros.
“But the real good surprise of this publication resided in the FCF, which stood at -45 ME (against -125 ME expected by us and -179 ME by the consensus)”, adds the analyst, allowing Alstom escape a downgrade of its credit rating by Moody’s (currently Baa2, negative outlook).
Alstom took advantage of this publication to clarify its expectations and targets in particular an adjusted EBITA margin between 5.1% and 5.3% (css expected 5.1%) and a positive FCF between 100 ME and 300 ME (css at 145 ME). For its part, Oddo leaves its EPS estimates unchanged.
‘However, we have raised our revenue growth (+7.2% vs 6%) for 2022/23 and, conversely, slightly lowered our adjusted EBITA margin to 5.2% (vs 5.4%). Our FCF is now anticipated at 255 ME’, concludes the analyst.
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