Vinci: Bank of America Merrill Lynch raises target price
(CercleFinance.com) - On Monday Bank of America Merrill Lynch raised its earnings estimates for Vinci, saying that the group is on track for a "solid" growth in its H2 results.
In a note, the US investment bank explains that figures of motorway traffic and the outlook for its airports justify a buy rating on the share.
In this context, the broker - which has nudged up its corresponding target price from 100 euros to 101 euros, maintaining its buy rating - still considers Vinci as one of its best picks in the European infrastructure sector.
For BofA-ML, the group's market valuation does not reflect its “solid” fundamentals.
"We still argue that Vinci's valuation fails to reflect the improving earnings momentum, its high-quality defensive earnings mix (...) and strong execution track record in its Energies and Roadworks divisions (...), which have shown only limited margin volatility in the past 15 years," the broker concludes.
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