Vinci: Oddo BHF remains upbeat after results

(CercleFinance.com) - This morning broker Oddo BHF confirmed its buy rating on the Vinci share, following the construction and concession group's publication of its annual results.


The broker has a target price of 90 euros for the share, representing upside potential of 14%.

Analysts welcome 2018 results that are close to the consensus, including upbeat Q4 sales. Indeed, while yellow vests protests badly hit motorway concessions at the end of the year, other businesses remain very dynamic, including contracting (construction and civil engineering).

In addition, the pleasant surprise clearly came from the group generating cash flow of 3.2 billion euros, after 2.5 billion euros in 2017, while the broker was expecting 2.6 billion euros, Oddo says in a research note, which also points out the group increasing its dividend to 2.67 euros.

It also finds the valuation of the Vinci stock particularly attractive (...) with a high visibility in terms of cash-flow generation and sound earnings growth momentum. Following its acquisition of Gatwick Airport, M&A risks now seem to have fallen, Oddo BHF concludes.



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