Stifel maintains its 'hold' rating on Alstom shares, with an unchanged target price of 22 euros.

The broker reports that the results published for the 1st quarter were in line with expectations, but that investors are mainly focused on the company's rescue plan.

Alstom intends to reduce its debt from €3.4 billion to €2 billion, and is considering an asset disposal program worth up to €1 billion, as well as a possible capital increase.

In addition, the company is announcing a dividend cut and a reduction in headcount of around 1,500, mainly in SG&A (general and administrative expenses) positions. Finally, Alstom has announced that Philippe Petitcolin will take over as Chairman of the Board of Directors.

Stifel reports that Alstom intends to implement these measures in order to target a medium-term aEBIT margin of 8-10%, an objective that the analyst nevertheless deems "unrealistic".


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