Eiffage: RBC raises target price

(CercleFinance.com) - Royal Bank of Canada reiterated its "outperform" rating on Eiffage shares on Tuesday, while raising its target price for them from 120 euros to 125 euros.


In its morning comments, RBC said that the construction and concessions group is relatively well protected against the effects of inflation thanks to its activities in motorway tolls, where tariffs are indexed to inflation, but also against rising interest rates.

The analyst says that Eiffage could generate a double-digit annual rate of return for its shareholders over the next five years, even though the stock is trading at a lower valuation than its historical average.

The broker says that Eiffage is its best pick in the transport infrastructure sector.


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