ALTEN : Stifel reduces its target price for the stock
July 12, 2024 at 01:48 pm IST
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Stifel maintains its Buy rating on Alten shares, despite the absence of positive catalysts, but with a price target reduced from 155 to 145 euros.
The analyst says he has updated his model ahead of the publication of second-quarter 2024 sales scheduled for July 25.
The broker anticipates sales of 1,050 million euros, with organic growth of just +1%, due to unfavorable calendar effects and the slowdown in the automotive and aerospace sectors.
We are lowering our sales forecast for fiscal 2024 in anticipation of increased caution in the second half of the year, which will result in lower operating leverage on earnings per share (EPS)," says Stifel, which believes that "Alten's earnings will continue to grow in 2024, albeit modestly".
The current share price reflects excessive fears about short-term earnings', it concludes.
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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%).
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