(Boursier.com) — In the wake of the market, Alten increased by 2% to 142.2 euros. The European leader in high-technology engineering and consulting revealed 2023 turnover growing by 7.6% (+10.2% in France, +6.4% outside France) with an increase to constant scope and exchange rates of +9%.
The slowdown should be confirmed during the first half of 2024, before an expected rebound in the second half. Alten should therefore achieve satisfactory organic growth in 2024 and will continue its targeted external growth strategy… Management did not comment on the 2024 margin but indicated that it will be higher than that of 2023.
Following this publication in line with its expectations and taking into account management indications but also the seasonality of the group’s activity and base effects, Oddo BHF anticipates the following sequence of organic growth for 2024: Q1: +3, 1%; T2: +4%; T3; +4.6%; Q4: +74%, leading to 2024 organic growth of 4.8%, slightly lower than its previous forecast (+5.7% org) but in line with market expectations (Consensus of +4.9% organic pre-publication). The broker leaves its profitability forecasts unchanged for 2023 and 2024. After adjusting its forecasts, lowering its WACC (9.4% vs. 9.6% previously) and taking into account the rerating of the IT & Engineering Services sector, it increases its target price of 160 to 175 euros. Certainly the momentum remains mixed in the short term, with a continued slowdown and low net recruitment, but Alten’s valuation remains attractive because the stock should trade at a premium over its peers given its superior growth, and not with a next to.
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