Invest Securities maintains its 'neutral' rating on Alten shares, with a slightly reduced target price, from €148 to €146.
While the company reported a 14.4% increase in sales in Q1, the CFO specified that organic growth should exceed +10% in 2023.
This fact prompts the analyst to raise his expectations (+1.6% at the level of 2023-25th NBI). Invest also points out that Alten's quality is well established and that market conditions remain favorable, 'particularly in the automotive, aerospace and defense sectors'.
On the other hand, M&A is unlikely to provide support in the short term, with fierce competition from PE funds reducing opportunities and limiting Alten to small-scale acquisitions (< 50mE in sales)' adds the analyst, who is therefore revising his target downwards, despite the slight increase in his expectations.
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Alten is European's No. 1 high-technology consulting and engineering group. The group's services are supplied to technical departments and IT system departments at large industrial, telecom, and utility companies. The activity is organized into 3 areas:
- technology engineering and consulting services: studies, design, and execution of research and development projects for new products/systems, consulting services, project management assistance, etc.;
- development of network architectures: design of terminals and network equipment, deployment and operation of networks;
- development of information systems: implementation or redesign of information systems and development of specific applications.
Net sales break down by market into automotive and rail (20.9%), trade/services/media/public sector (18.4%), aeronautics and space (14.8%), industries (9.4%), banking/finance/insurance (9.1%), life sciences (8.3%), energy (7.3%), defense/security/maritime (6.5%) and telecoms (5.4%),
Net sales are distributed geographically as follows: France (31.9%), North America (11.9%), Germany (9%), Spain (9.1%), Asia-Pacific (7.9%), United Kingdom (7.7%) , Italy (7.7%), Benelux (5.6%), Scandinavia (4.4%), Eastern Europe (2.8%), Switzerland (1.5%) and others (0.5%).
ALTEN 
