ALD slides for 2nd day after 2026 targets disappoint

Ayvens SA

19/09/2023 09:49

** Shares in ALD  ALDA.PA  drop more than 4% to 8.05 euros,
extending Monday's losses, after Societe Generale's  SOGN.PA 
car leasing unit's 2026 targets disappointed investors
    ** Stifel cuts PT by 5% to 19 euros, saying ALD's "realistic
and cautious" plan falls short of the overly-optimistic
ambitions it had set out when it acquired Leaseplan
    ** "Until recently, ALD claimed to be aiming for annual
long-term fleet growth post integration of over 6%. We have
never believed in this target, and expect ALD's fleet to grow by
just over 2% over the next few years," Stifel says in a note
dated Tuesday
    ** Restructuring costs, including a possible 10% headcount
reduction, might also weigh on profits in the short term, the
brokerage adds
    ** ING notes the stock is undervalued and trades cheaply at
roughly half its tangible book value
    ** Stifel links the undervaluation to the stock's complexity
weighing on visibility and the need to adjust its communication
to parent SocGen that also dropped heavily on Monday
    ** The stock sits at the bottom of France's SBF 120 index
 .SBF120  for the second day running

 (Reporting by Michal Aleksandrowicz)
 ((michal.aleksandrowicz@tr.com))