Jefferies has reiterated its buy recommendation and maintained its price target of EUR25 on Alstom following the publication of the company's first-half results.
The brokerage considers the update to be very strong, even though second-quarter orders came in 3% below expectations.
"The book-to-bill ratio remains high, second-quarter revenue grew by 2% (+9% on an organic basis), and first-half adjusted EBIT was 3% above forecasts (with a margin up by 10 basis points)," the research firm highlighted.
The analyst noted that free cash flow improved by 17% to -EUR770 million, outperforming projections that had anticipated a maximum outflow of -EUR1 billion, thanks to advance payments received.
"Management also points out the continued growth in margins on booked orders, with the gross margin on the order book rising by another 20 basis points," the analyst added.
The company has confirmed its guidance for the 2026 fiscal year, now expecting organic growth of more than 5% (up from the previous range of 3% to 5%).
