We expect 1H17 results to disappoint. Downgrade to Hold, new TP €5.7...

We expect sales to have taken a hit in 2Q17 as manufacturing for Saudi Arabia slows down. The client has not completed the Mecca - Medina maintenance centre and is unable to take delivery of the trains. For 1H17e we expect sales of €201mn, a –33% drop from 1H16 reflecting lower sales in MEA and Kazakhstan. We expect €45mn EBITDA, down –21% from 1H16 and €31mn (–30%) for the PBT €24mn net profit (–30%). Lower manufacturing should help to turn the equity free cash flow to positive, this is a plus...