ATE: Leadership Transition And 2025 Downturn Will Shape Moderate Longer-Term Outlook

Analysts have nudged their price target for Alten higher to approximately €68 from about €66.80, citing a modestly stronger outlook for revenue growth and profit margins. This improvement more than offsets a slightly higher assumed discount rate and a marginally lower future P/E multiple.

What's in the News

• Alten confirmed its 2025 earnings guidance, expecting an organic revenue decline between 5.2% and 5.5% amid a continued slowdown and uncertain macroeconomic environment, with only early positive signals emerging for 2026 (company guidance).
• The Board decided to separate the roles of Chairman and Chief Executive Officer, following Chairman and CEO Simon Azoulay's wishes, as part of a broader governance reshaping (board meeting).
• The Board appointed Cyril Malargé, currently CEO of Sopra Steria, as Alten's new Chief Executive Officer. His appointment is effective no later than 31 January 2026, and his start date as CEO is set for 17 November 2025 (executive changes).
• The same Board meeting also covered the resignation of independent director and Audit Committee chair Aliette Mardyks and allowed for discussion of other potential matters (board meeting).

Valuation Changes

• Fair Value: increased slightly from approximately €66.82 to €68.00, reflecting a modest uplift in the intrinsic valuation.
• Discount Rate: risen slightly from about 8.38 percent to roughly 8.82 percent, implying a marginally higher required return.
• Revenue Growth: revised from a slight expected contraction of around 0.31 percent to a modest expansion of about 0.77 percent, indicating a more constructive growth outlook.
• Net Profit Margin: edged up from roughly 6.23 percent to about 6.36 percent, signaling a small improvement in expected profitability.
• Future P/E: reduced slightly from about 11.32x to approximately 11.12x, suggesting a marginally more conservative valuation multiple applied to future earnings.