Vinci: Oddo BHF raises target price
(CercleFinance.com) - An Oddo BHF analyst said this Thursday morning that he is increasing its target price for the Vinci share, while maintaining a "neutral" recommendation.
Believing that its valuation of Eurovia "was certainly over-conservative," Oddo BHF says that it has raised its target price, by integrating the valuation of quarries at 0.6 euro per tonne of authorised reserve, to 96 euros, vs. 93 euros, on this basis.
The consensus has a median valuation for Eurovia at 2.7 billion euros (Oddo estimates 2.0 billion euros). In Vinci's internal models, the valuation would be 50%/60% higher, or ~4.0 billion/4.5 billion euros. This delta with market expectations represents an estimated 2 euros per share (3 euros more for Oddo). This difference is mainly due to the valuation of quarries, and particularly authorised reserves. This amounted to 3.1 billion tonnes for a valuation of between 0.6 euros and 0.7 euros per tonne of authorised reserve. For the roadworks division, the broker explains that the group values the business at 6x/7x EBIT.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Believing that its valuation of Eurovia "was certainly over-conservative," Oddo BHF says that it has raised its target price, by integrating the valuation of quarries at 0.6 euro per tonne of authorised reserve, to 96 euros, vs. 93 euros, on this basis.
The consensus has a median valuation for Eurovia at 2.7 billion euros (Oddo estimates 2.0 billion euros). In Vinci's internal models, the valuation would be 50%/60% higher, or ~4.0 billion/4.5 billion euros. This delta with market expectations represents an estimated 2 euros per share (3 euros more for Oddo). This difference is mainly due to the valuation of quarries, and particularly authorised reserves. This amounted to 3.1 billion tonnes for a valuation of between 0.6 euros and 0.7 euros per tonne of authorised reserve. For the roadworks division, the broker explains that the group values the business at 6x/7x EBIT.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.