Alstom SA

ALO: XPAR (FRA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€88.10	Ksdws	Wmbvkwcn

Alstom Earnings: Bad News Continues, Equity Issuance More Likely, Reducing Our Fair Value Estimate

Loredana Muharremi

Nov 16, 2023

Alstom's recent financial results met expectations but were overshadowed by the need for potential capital raising and dividend suspension. Previously, the company issued a cash flow warning yet ruled out a capital increase. That changed following Moody’s recent downgrade to Alstom’s credit outlook, shifting management focus in reducing net debt to maintain its investment-grade rating. Alstom must lower its gross debt-to-core profits ratio to 3.7 from approximately 4.5 in the next 12 months and reduce net debt by EUR 2 billion by March 2025. These targets are to be achieved through asset sales, quasi-equity issuance, and potentially a capital increase.

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