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(Il Sole 24 Ore Radiocor) – Alstom rushes to the Paris Stock Exchange, encouraged by the positive comments of Deutsche Bank analysts. The stock of the manufacturer of trains and railway infrastructures, just over an hour after the start of trading, achieved an increase of 9.4% to 13.47 euros, by far the best of the Cac 40 index and also among the majors of the Stoxx Europe 600, with very lively trading.
Deutsche Bank, which believes that “the worst is over” for Alstom, raised its recommendation on the stock from ‘hold’ to ‘buy’, with a price target unchanged at 17 euros. In a research note, DB analysts return to the debt reduction target of two billion euros by 2025, announced by the group last November, and say they expect a capital increase limited to around 500 million euros. «The dilutive effect linked to this fundraising project, as well as the risks of execution are now well integrated by the market now that the stock has lost 54% in a year», underline the experts of the German bank, awaiting know further details of Alstom’s plan to reduce debt, which are expected to be disclosed in May. DB also explains that he sees potential for improvement both in terms of profit margins and the company’s free cash flow.