ALTEN : Invest Securities adjusts its price target
July 28, 2023 at 07:00 am EDT
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The analyst believes that after more than 8 consecutive quarters of organic growth (>+14%), the 2nd quarter of 2023 (+8.6%) marks a change in trend.
While the working day effect partly explains this slowdown (as well as an exceptional item in Singapore), it is above all the sign of a return to normal after a period of very high demand post COVID. The cautious message on margins, without being alarmist, could also make us tense up until the H1 23 results in mid-September", says Invest Securities.
As our estimates already incorporate a cautious scenario, we have no reason to change them (especially as Alten has announced 3 small acquisitions), but the consensus could reduce its expectations (-5% at NBI level)," adds the research firm.
In view of this less favorable short-term momentum, Invest Securities reiterates its neutral opinion, with an adjusted target price of E142 (versus E146).
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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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