Vinci: UBS hails a dynamic start to the year

(CercleFinance.com) - This morning UBS confirms its buy rating on the Vinci share, whose first quarter sales showed strong growth, the broker's research report hails.


Maintained at 96 euros, its 12-month target price only suggests upside
potential of 7.5%.

The research note points out that the construction and civil engineering group's quarterly sales, which reached 9.7 billion euros, grew by 9.6%, including 5.9% like-for-like, which is "3% above UBSE / consensus." "French motorways surprised with +1% traffic growth (UBSE -1%)," UBS says, despite the disruption of tolls resulting from the "gilets jaunes" protests and the later Easter weekend this year (in Q2, and not Q1 as was the case last year). Moreover, price changes, which remain favourable, "suggests the impact from the commuter discount has been negligible so far".

In addition, the group's contracting business (construction and civil
engineering) was dynamic, with organic growth of 6.5%, notably thanks to Eurovia (+14.6% in organic terms). Meanwhile, its road works subsidiary benefited from favourable weather conditions in Europe, although this cannot be extrapolated over the entire fiscal year. Finally, its construction division was also upbeat and the group's order backlog continues to grow. All this resulted in the group confirming its forecasts.



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