Vinci: Berenberg begins tracking as a buyer
(CercleFinance.com) - Berenberg has begun to cover Vinci shares today, with a buy rating and target price of 105 euros, praising the French construction and concessions group's "solid assets".
In a report, the broker justifies its favourable opinion by: (1) the company's defensive profile, which it believes protects it from inflationary pressures, and (2) its intelligence in terms of capital allocation, which has enabled it to generate an "impressive" ROCE of 9% over 2011-2019.
Berenberg also points out that its motorway infrastructure operations division (around 50% of operating profit) provides significant resilience for its cash flow.
The analyst also explains that it sees upside potential in airport hubs and it appreciates the company's strategic focus on its construction business.
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