Alstom shares tumble over 6% after J.P. Morgan and Citi downgrade and cut guidance
Alstom’s stock fell more than 6% in Paris after J.P. Morgan and Citi downgraded the railmaker and lowered their price targets. Both banks cited a profit warning tied to the Coradia regional‑train platform, which led the company to cut its full‑year adjusted core margin to about 1% and forecast a €1.5 billion free‑cash‑flow outflow. Alstom also announced a €2 billion deleveraging plan involving asset sales and possible equity raises.
Why it matters
The downgrade and guidance cut signal weaker earnings and cash‑flow outlook, which may pressure Alstom’s share price further. The €2 billion deleveraging plan could affect the capital structure and dilute existing shareholders if equity is raised.
Key facts
- 1Alstom shares fell more than 6% in Paris after the downgrades. investing.com
- 2J.P. Morgan lowered its December 2027 target price to €15.60 from €28. investing.com
- 3Citi lowered its target price to €14 from €28. investing.com
- 4Alstom guided for a full‑year free cash flow outflow of about €1.5 billion. investing.com
- 5Adjusted core margin guidance was cut to about 1% from a prior 6.5% forecast. finance.biggo.com
- 6Alstom announced a €2 billion deleveraging plan that may include asset sales, convertible bonds and a capital increase. finance.biggo.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.