Vinci: a buyer, Credit Suisse targets 95 euros

(CercleFinance.com) - Credit Suisse today confirms its buy rating ("outperform") on the share of the French construction and concessions group Vinci, with the analyst who monitors the stock upgrading the share.


Mentioning “quality assets at a reasonable price,” the broker also confirms its target price of 95 euros, meaning upside potential of over 15%.

According to a research report, Vinci has "High quality long-term assets," primarily consisting of concessions (around 60% of enterprise value). The latter are distinguished for their indexation to inflation and their close link to economic conditions, the expected improvement in their EBITDA margin (+40 to +50 basis points between 2018 and 2023, analysts predict), and a "limited political risk".

"We note Vinci Airports has consistently surprised to the upside," says the broker's note, adding that the potential acquisition of ADP would be "strategically sensible and accretive deal at the current share price (pre-synergy), if a privatisation were to take place".



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.