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On Tuesday, Jefferies analyst Simon Toennessen maintained a Buy rating on Alstom (EPA:ALSO) SA (ALO:FP) (OTC: ALSMY), with a price target of €24.00. Toennessen highlighted Alstom's robust third-quarter order and revenue performance, noting that orders exceeded expectations by 3% and revenues by 4%.
The strong results were particularly evident in the Service orders, which surpassed consensus estimates by approximately 50%, a positive indicator for the company's margin mix. The company, currently valued at nearly $10 billion, has demonstrated solid revenue growth of 6.2% over the last twelve months. InvestingPro analysis reveals several additional insights about Alstom's performance, with 8 key metrics available to subscribers.
Management at Alstom reiterated their full-year guidance for all parameters, providing a sense of stability and continuity for investors. The affirmation comes after Alstom's shares experienced a challenging period, declining 10% compared to the S&P Europe 350 Index. Toennessen suggested that the market could anticipate some recovery in Alstom's stock following the positive quarterly update.
The analyst expressed confidence in Alstom's prospects over the next one to three years, citing the increased credibility brought by the company's new Chief Financial Officer (CFO) and the potential for improved operating metrics, including free cash flow (FCF). The commentary reflects a positive outlook on the stock's value and the strategic financial management expected under the new CFO's leadership.
Alstom's performance and reaffirmed guidance are likely to be well-received by investors seeking reassurance after the recent dip in the company's share price. The detailed third-quarter results and the management's confidence in meeting the full-year targets suggest a steady path forward for the rail transport company.
In other recent news, Alstom SA has reported strong financial results, surpassing expectations with significant orders and sales. The company's revenue growth of 6.21% was largely driven by the robust performance of its Services and Systems divisions. Despite minor setbacks in car production, Alstom's quarterly results have been viewed positively by analysts at Citi, who maintained a Buy rating on the company's shares. However, Goldman Sachs downgraded Alstom's stock rating from 'Neutral' to 'Sell' due to concerns about the company's ability to sustain its strong performance beyond 2024.
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