JPM resumes Alstom coverage at 'overweight' on successful debt reduction
** J.P. Morgan resumes coverage of French train maker Alstom ALSO.PA with an "overweight" rating, up from "neutral" previously, and a target price of 21.80 euro
** The broker says the main driver behind this move is successful delivery of a 2 billion euro ($2.17 billion) debt reduction plan
** JPM says that "recent underperfomance provides an attractive entry point", believing debt reduction will result in a pick up in commercial momentum thanks to a robust end-market outlook
** Margin underperformance against the original target was driven by rolling stock, while the other three business areas performed well, broker says in a note
** With a more profitable backlog phasing in, JPM sees a higher likelihood of Alstom reaching its medium-term adjusted EBIT margin target of 8-10% by FY27
** Out of 18 analysts that cover Alstom SA, nine rate the stock "strong buy" or "buy", seven rate "hold" and two rate the stock "strong sell" or "sell"
($1 = 0.9230 euros)
Reporting by Leo Marchandon
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