Alstom shares were trading in positive territory around 10:15 a.m. (+0.98% at 17.07 euros) following a note from Oddo BHF, in which analysts reiterated their outperform rating with a price target of 24 euros, implying a potential upside of 42%.
The Franco-German financial group reported hosting an investor presentation with Alstom last week, during which the new CEO, Martin Sion, 'spoke at length about the group's execution issues (lack of consistency in operational standards, planning deficiencies, engineering problems, etc.)'.
He specifically noted that several measures have already been implemented, including the sharing of best practices between sites, lean manufacturing (an industrial organization method aimed at increasing production efficiency by eliminating waste), a procurement review, and an increase in development costs to de-risk the project phase.
Oddo BHF views the diagnosis and the initial corrective measures taken favorably.
Martin Sion is currently Chief Executive Officer at Alstom SA since 2026, Chief Executive Officer at ArianeGroup SAS since 2020, Chairman at Safran Electronics & Defense SAS since 2023, and Director at ArianeGroup Holding SAS since 2020. Formerly, Mr. Sion was Chief Executive Officer at ArianeGroup GmbH from 2023 to 2026, Head of the Space Engines Division at SNECMA SA, and Chief Engineer at Société Européenne de Propulsion. Education includes an undergraduate degree from École Centrale Paris, conferred in 1990.
Alstom is one of the world leading manufacturers of infrastructures for rail transport sector. Net sales break down by family of products and services as follows:
- rolling stocks (43.1%): trains, tramways and locomotives;
- railway services (38.4%): maintenance, modernization, management of spare parts, support and technical assistance services;
- signaling, information and control systems (9.4%);
- railway infrastructures (9.1%): infrastructures for the track laying, lines electrical power systems, electromechanical equipment, telecommunication devices and traveler information in station, terminals for automatic purchase of tickets, access to escalators, lifts for disabled, automatic landing doors on platforms, ventilation, air conditioning and lighting systems).
Net sales are distributed geographically as follows: France (14.3%), Europe (45.1%), Americas (16.3%), Asia/Pacific (11.7%), and Middle East/ Africa/ Central Asia (12.6%).
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