Gregory Ramirez

ALTEN: R&D is the lifeblood of industries | CONVICTION BUY vs. BUY | EUR159 VS. EUR178

R&D is the lifeblood of industries

We upgrade our rating to Conviction Buy from Buy. Alten continues to perform in a supportive industry environment. We also like the clear strategy and believe in the benefits of the offshoring drive. The Engineering & R&D Services market, where Alten is the No. 2, continues to see structural changes pushing industrial groups to accelerate innovation through digitisation. At the same time, prices keep increasing due to the shortage of engineers. Alten has been able to navigate through profound changes in the competitive landscape during the last 5-10 years and has embraced offshoring, increasing efficiency. Our DCF-derived price target reduces to EUR159 from EUR178 in as we factor in a more challenging economic environment – nevertheless leaving 45% upside.
Alten SA

Alten is a holding company. Through its subsidiaries, Co. operates in three areas: Engineering and Technology Consulting (ETC), Telecoms Networks and Multimedia, and Information Systems (NTIS). Through the Engineering and Technology Consulting (ETC) segment, Co. studies and designs technology products for technical divisions in industry and telecoms. The Telecoms Networks and Multimedia segment focuses on Product design, Architecture, deployment, and operation of networks. Lastly, the IT systems segment comprises Applications and software development, and Infrastructure and Telecoms (Applications, systems and networks Corporate telecommunications).

Bryan Garnier
Bryan Garnier

Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.

Gregory Ramirez

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