Alstom, FR0010220475

Alstom stock cut to Neutral as profit warning delays cash recovery

Published on 11/04/2026 at 03:58 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

J.P. Morgan cut Alstom stock to Neutral after a profit warning involving major charges. The bank also lowered its long-term target.

Analysts reassess Alstom outlook

The profit warning included approximately EUR 1 billion in charges and pushed analysts to reassess Alstom's earnings outlook.
J.P. Morgan expects the company's free-cash-flow recovery to arrive at least one year later than previously forecast.
Alstom's backlog review is scheduled to continue through the end of the fiscal year, with half-year results due on November 17.

Alstom, FR0010220475, Illustration mit AI erstellt.

J.P. Morgan downgraded Alstom stock to Neutral from Overweight and cut its price target to EUR 15.60 from EUR 28.00, according to Investing.com. The analyst action followed Alstom's profit warning announced on Monday, November 2, which included approximately EUR 1 billion in charges.

Profit warning resets expectations

J.P. Morgan said Alstom had already taken provisions in the second half of the previous fiscal year and had issued fiscal 2027 guidance below consensus estimates. The bank now expects the company's free-cash-flow inflection to be delayed by at least one year.

The review of Alstom's backlog is expected to continue through the end of the fiscal year. J.P. Morgan said risks to second-half guidance could not be ruled out and linked the lower target to earnings reductions and a lower valuation multiple.

Alstom's EUR 2 billion deleveraging plan is intended to support its investment-grade credit rating. The rating action adds to a broader reassessment of the company's earnings and cash-flow outlook after the warning.

Alstom stock's real-time quote of Alstom stock is available on the company snapshot page.

Rail systems across global markets

Alstom S.A. is based in Saint-Ouen, France, and supplies integrated rail-transport solutions across Europe, the Americas, Asia Pacific, the Middle East and Africa. Its portfolio includes rolling stock, signaling, infrastructure, digital rail solutions and services such as maintenance, modernization and parts. The company serves urban, regional, intercity and high-speed rail markets with trains, systems and components.