Vinci: Oddo upgrades to buy, but adjusts target

(CercleFinance.com) - This morning an analyst at Oddo BHF announced that he is reducing his target price for the Vinci share, believng that none of its businesses will be spared.


However, the analyst has adopted a buy rating, saying that he is convinced that Vinci will outperform in the current uncertain environment.

While it is obviously still very complicated to assess the impacts of COVID-19, we have integrated a scenario that seems cautious, although realistic, at this stage. This includes a 25% drop in airport traffic in Europe in 2020, with a recovery that is limited to +15% in 2021. There is also expected to be a 15% decline in motorway traffic in France for passenger cars and a 12% fall in truck traffic (respectively +17% and +12% in 2021), along with a drop in contracting (-6.2% in organic terms, which corresponds to around a 70% fall during a period of confinement, which we estimate will last 1.5 months), the broker explains.

Oddo BHF has therefore cut its target price for the share from 103 euros to 86 euros, although this still represents upside potential of 20%.


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