Renta 4 | Talgo (TLGO) has been awarded a contract in Sweden to supply 10 locomotives and 91 passenger carriages worth €485 million, according to press reports.
The trains are due to enter service from 2030 and the locomotives could be supplied by Siemens.
Assessment: Positive news. The award raises the order book to historic levels of over €6 billion, with the contract value representing around 10% of Talgo’s order book.
Uncertainty regarding the ability to deliver the contract on time and in full; we await the company’s announcement of a new strategic plan to address these concerns,
We maintain our Overweight recommendation with a Target Price of €3.50 per share.
