ALTEN SA (0O1S – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Valentin Paul Jahan from Stifel Nicolaus maintained a Hold rating on the stock and has a €95.00 price target.
Valentin Paul Jahan’s rating is based on a combination of factors concerning ALTEN SA’s financial performance and outlook. The company reported a smaller than expected decrease in adjusted EBIT for FY24, but this was overshadowed by significant declines in operating and net profits due to goodwill impairments and restructuring costs, particularly in Germany and the UK. Despite some regional improvements in France, international operations faced challenges, leading to overall margin pressure and a decline in profitability.
Looking ahead, the outlook for FY25 is concerning, with the company starting the year with fewer engineers and no clear signs of economic improvement. This leads to expectations of continued negative news flow and profit declines in the first half of the year, with any potential recovery in the second half remaining uncertain. Despite an 8% increase in the anticipated adjusted EPS for 2025 and a raised price target, the challenging environment and lack of visibility into a recovery have warranted maintaining a Hold rating, reflecting caution amidst these uncertainties.