On Thursday, Citi reaffirmed its Buy rating and EUR22.00 price target for Alstom (EPA:ALSO) SA (ALO:FP) (OTC: ALSMY), countering recent concerns over the company's financial path. Alstom's stock had seen a decline due to fears related to its commercial paper balances, suggesting a potential deviation from its expected deleveraging trajectory. However, these fears were addressed by the company's recent statement, which was made public on September 10, that it has increased its cash reserves since the last reporting period.
The company has reported having more cash and cash equivalents than its short-term debt and remains committed to its plan to repay this debt by September 30. Citi analysts believe that the fulfillment of this commitment, along with the reiteration of the company's guidance during its earnings announcement on November 13, could positively influence the market's valuation of Alstom shares.
Furthermore, Alstom is set to engage with investors at the Innotrans rail technology trade fair in Berlin on November 25. The event is expected to bolster investor confidence regarding industry demand levels, which continue to be robust. Citi has also extended an invitation to interested parties to join them for the event, signaling a potential opportunity for investors to gain deeper insights into the rail technology industry and Alstom's role within it.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.