AOMFF - Alstom: Seeing Potential For Further Recovery In 2026-2028

2025-05-15 16:11:44 ET

Summary

• Alstom SA has significantly recovered and is now considered a "Strong Buy" by Wall Street and Seeking Alpha's Quant, with a 40% increase in my position.
• The company's fundamentals are strong, with organic sales growth of 6.5%, EBIT up 18%, and a backlog of nearly €95B.
• Risks are minimal, primarily political, while the upside includes infrastructure investments, service business growth, and a significant backlog providing high-gross-margin sales visibility.
• I maintain a price target of €29/share, with a fair value of €40/share, indicating a continued upside of over 20% per year for ALSMY stock.

Dear readers/followers,

In this article, I'll be looking into an update for the infrastructure and railroad company Alstom SA ( ALSMY ). If you recall my work on the company, you'll remember that I've been positive on them for quite some time, even while they fell to almost-unheard-of levels due to the danger of severe shareholder dilution. However, Alstom has recovered since and has been on a "tear" for some time now....

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