Oddo maintains its Outperform rating on Alten shares, with a price target raised from €165 to €176.
The research firm is basing its opinion on Alten's "solid" results for 2022, with a MOA of 11.1%, above expectations (vs. ODDO BHF & Css: 10.9%) and the Group's historical standards, despite an unfavorable price/salary effect.
Oddo highlights the Group's solid 2023 growth prospects. Management expects a slight deterioration in MOA vs. 2022, but remaining at a level above 10% (vs. ODDO BHF: 10.4%).
Alten has also unveiled its 2023-2026 development plan, which targets a MOA greater than or equal to 10% and a number of engineers of around 70,000 by 2026, implying average annual growth close to 9%, reports the analyst.
Alten is currently trading at less than 10x EV/EBIT fwd 12 months, which represents an opportunity", concludes the broker.
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Alten is European's No. 1 high-technology consulting and engineering group. The group's services are supplied to technical departments and IT system departments at large industrial, telecom, and utility companies. The activity is organized into 3 areas:
- technology engineering and consulting services: studies, design, and execution of research and development projects for new products/systems, consulting services, project management assistance, etc.;
- development of network architectures: design of terminals and network equipment, deployment and operation of networks;
- development of information systems: implementation or redesign of information systems and development of specific applications.
Net sales break down by market into automotive and rail (20.9%), trade/services/media/public sector (18.4%), aeronautics and space (14.8%), industries (9.4%), banking/finance/insurance (9.1%), life sciences (8.3%), energy (7.3%), defense/security/maritime (6.5%) and telecoms (5.4%),
Net sales are distributed geographically as follows: France (31.9%), North America (11.9%), Germany (9%), Spain (9.1%), Asia-Pacific (7.9%), United Kingdom (7.7%) , Italy (7.7%), Benelux (5.6%), Scandinavia (4.4%), Eastern Europe (2.8%), Switzerland (1.5%) and others (0.5%).
ALTEN 
