JPM sees Alstom free cash flow recovery pushed back by at least a year

By Reuters News

** JPMorgan downgrades its rating on French train maker Alstom ALSO.PA to "neutral" from "overweight" as ongoing execution issues delay free cash flow recovery by at least a year

** JPM says the magnitude of Monday's nearly €1 billion ($1.12 billion) profit warning was a real surprise given provisions already taken in the second half of last year

** JPM cuts its PT by 44% to €15.60, saying it underestimated risks

** JPM adds that while Alstom's €2 billion deleveraging plan is necessary to maintain its investment-grade credit rating, it will weigh on the share price

** While the long-term turnaround of the rolling-stock business remains a "self-help story", it warns near-term numbers are volatile amid a backlog review

** Among the 17 analysts covering Alstom, 4 rate the stock "strong buy" or "buy,"​ 10 rate "hold" and 3​ rate the stock "strong sell" or "sell" - LSEG data


($1 = 0.8937 euros)

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