UBS reiterated its Buy recommendation and its target price of 47 euros on Alstom shares. The broker explains that the rail specialist’s stock remains volatile due to uncertainties surrounding the execution of the order book inherited from Bombardier Transportation and, recently, its (limited) exposure to Russia, as well as potential impacts on cash flow resulting from the current global economic environment.
However, following contact with management, the analyst underlines that the group reiterated its positive guidance in terms of free cash flow for 2022 and 2023. And this, despite the current tensions in the supply chain and pressures inflationary on costs.