Alstom shares hit a 2-year low at €10.51 and fall 4.5%

New intraday low at €10.51, well below all moving averages

Alstom shares were quoted at €11.17 in early afternoon, down 4.45%, and ranked last in the SBF 120 while the index shed just 0.07%.

The stock touched €10.51 during the session, erasing its previous two-year low at €10.89. It also broke below the lows of the past 30, 150 and 250 sessions (€11.69), which have now become resistance.

The share price thus sits 28.2% below its 20-day moving average and 41.3% below its 200-day moving average, a gap that reflects the scale of the decline: -31.4% over the week. The RSI at 18 reflects the same intensity of the selling movement.

JP Morgan and Oddo BHF cut their price targets by nearly half

Analyst opinions accompany this movement. Oddo BHF lowered its target from €24 to €12 with a neutral rating, while JP Morgan moved from overweight to neutral and cut its target from €28 to €15.60. These revisions follow the publication, on Monday, November 2, of preliminary half-year results showing a negative adjusted EBIT margin.

The group lowered its annual targets, reporting a negative adjusted EBIT margin in its half-year results, compared with a previously targeted guidance of 6.5%. The disclosures consulted also list seven short-selling funds, for a cumulative short position of 5.49% of the share capital, up 0.42 points over 30 days.

At 7.4 times expected earnings for the current financial year according to the consensus of the analysts surveyed, the stock now trades at a significantly lower valuation than a few weeks ago.