Down by more than 8% over one month, the stock of this railway equipment manufacturer paid the price for the reclassification of part of the stake of its reference shareholder, Bouygues, and a lack of catalysts. A good opportunity to come back to the matter with a turbo call.
In a more difficult stock market context, the Alstom share has occasionally fell below the threshold of 40 euros. The reclassification at the end of September of a party of Bouygues’ stake (4.8% out of a total of 15%) at a price of 42 euros accelerated the profit-taking phenomenon observed for the most tops of 50 euros. Even if Bouygues is not intended to remain in the railway equipment manufacturer’s table, we consider that below 40 euros, coming back to Alstom is interesting. Its merger with the subsidiary Bombardier railroad will allow it to compete more easily with the competition from the world leader, the Chinese CRRC, and to consolidate a portfolio of record orders of 41.7 billion euros, representing 5 years of sales business. In the very short term, the health crisis has caused bottlenecks supply chain bottleneck and the group already has expected to grow slightly below its estimated potential of 5% per year before a reacceleration of dynamics. The objective of an operating margin of 9% remains Alstom’s ambition and the synergies of the merger with the rail arm of Canadian Bombardier should help. Of a strategic point of view, the development of a low carbon transport offer with hydrogen locomotives is an asset to both principals concerned about the implementation of an environmental policy sustainable and with investors.6 times leverageAt 16.3 and 13.4 times the estimated profits for 2021 and 2022, the stock is not very expensive and it is possible to bet on a catching up with leverage at by means of a turbo call. The one selected is issued by BNP-Paribas with a unlimited maturity and a security threshold set at 34.88 euros below which the stock must not go back down. Otherwise, the certificate will almost lose the entirety of its value. However, the significant gap between the course current action and this safety threshold limits the risk of deactivation and provides sufficient time to unwind the position in the event of a change unfavorable title. Meanwhile, the call has a leverage of 6.02 time. So in the hypothesis of a rebound of the action to 45 euros for example, the turbo will gain 68.1%. But be careful because, conversely, it will lose 76.8% of its value if the Alstom share price falls further to 35 euros.Our advice: buy an Alstom turbo call (code: FRBNPP01J6L5); deadline : unlimited; level of funding: 33.5323 euros; safety threshold: 34.88 euros; parity: 10 calls for 1 share; price: 0.69 euro; amount: 1In the meantime, the call has a leverage of 6.02 times. So in the hypothesis of a rebound of the action to 45 euros for example, the turbo will gain 68.1%. But be careful, because conversely, it will lose 76.8% of its value in the event of continued decline in Alstom’s share price to 35 euros.Our advice: buy an Alstom turbo call (code: FRBNPP01J6L5); deadline : unlimited; level of funding: 33.5323 euros; safety threshold: 34.88 euros; parity: 10 calls for 1 share; price: 0.69 euro; amount: 1