Alten: H1 13 analysts' meeting feedback: market recovery confirmed
NEUTRAL, Fair Value EUR32 vs. EUR28 (+5%)
We reiterate our Neutral rating but raise our DCF-derived fair value to EUR32 from EUR28 following yesterday’s analysts’ meeting, as: 1). We increase our adj. EPS forecasts by 6% for 2013 and 4% for 2014-15 (+EUR1); 2). We now consider that with a market cap of EUR1bn, Alten’s beta should be lower than that previously (1.6 vs. 1.8) in our model (+EUR3). Market recovery on High-tech Consulting is confirmed, and Alten is poised to benefit from it from Q4 13 with better growth and higher margins. That said, following an 18% share price rebound over the last three months, we keep our Neutral rating as the company has limited leverage on its operating margin in our view.
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