Buy Signal on Alten (ATE-FR)

We had an Enter Long signal on March 16th 2021, triggered by our system on ATE-FR, Alten the R&D outsourcing company.

Alten is a € 3.4 Bn market cap, high-technology consulting and engineering group. The group's services are supplied to technical departments and IT system departments, mainly at large companies. The business is split between 3 segments :

1/Technology engineering and consulting services: studies, design, and execution of research and development projects for new products/systems, consulting services, project management assistance.

2/Development of network architectures: design of terminals and network equipment, deployment and operation of networks;

3/ Development of information systems: implementation or redesign of information systems and development of specific applications.

The revenue by market breaks down into Automotive (21%), Finance and Tertiary (18%), Aeronautics and Space (16%), Energy (11%), Life Sciences (7%), Multimedia (7%), Telecommunications (6%), Defense and Security (5%), Rail and Naval (4%) and other (5%).

After a double digit drop in 2020’s revenue at €2.35bn coupled with a 400 bp drop in operating margin at 6.1% mainly due to the struggling Aerospace and Automotive sectors, Alten is expected to recover progressively from 2021 and to reach agin 2019 figures in 2022. However the company is very active in M&A and an acceleration in acquisition, thanks to a strong balance sheet may accelerate the recovery in progress.

Short term catalyst : Recovery in the Aerospace and Automotive sector, acquisitions.

This signal looks consistent with the Major Bullish Trend in the European Technology sector.