Alstom, a major player in the rail transportation sector, has received a 'Neutral' rating from UBS, with a target price of €20.
Alstom is known for its diverse portfolio, which includes rolling stock, railway services, signaling systems, and railway infrastructure. Rolling stock is the largest segment, accounting for 51.8% of net sales, followed by railway services at 24.2%. The company also generates revenue from signaling and control systems (15%) and railway infrastructure (9%).
The company recently held a management briefing in India, where it showcased its strong position in the Asia-Pacific market. Analysts believe that Alstom's growth targets presented during the briefing are conservative, considering its focus on maintaining stable margins. Alstom's presence in the Asia-Pacific region, particularly India, is a key part of its growth strategy. The company's conservative growth targets in this region may reflect a cautious approach, but its reputation and experience in the rail sector give it an advantage.
Analysts have a cautiously optimistic outlook for Alstom, with an average recommendation leaning towards 'Buy'. The last closing price for Alstom shares was €21.15, with an average target price of €23.43, indicating a potential upside of approximately 10.77%. Alstom's strategic initiatives and established market presence position it well for future growth. The ongoing developments in the rail sector, driven by technology and demand for sustainable transportation, further enhance Alstom's potential for achieving its growth objectives.