Oddo maintains its 'outperform' rating on Alten, with a price target raised from €150 to €165.
The research firm reports that Alten published Q4 sales of €1,000m on Friday, slightly above expectations (vs. ODDO BHF: €996m; Css: €965m). Organic growth came in at 14.9%, broadly in line with expectations (vs ODDO BHF: 13.9% y/y org.; Css: 15.4% y/y org.).
This is a good publication, with solid growth in Q4, but above all a margin slightly above expectations, and FCF which should be good. What's more, the tone is reassuring for the start of 2023, and the Group looks set to achieve growth well above the 7% level expected by Consensus, even though the erosion of operating margin is already expected", reacts Oddo.
The broker recalls that in H2 2022, Alten's management expects an MOA at the top end of the previously indicated range (10.2% to 10.5%), which translates into an MOA of around 10.9% for 2022 (Css: 10.8%).
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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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