Vinci: still a buyer, UBS revalues airport assets
(CercleFinance.com) - After updating its forecasts for the Concessions division, UBS has raised its 12-month target price on the Vinci stock from 90 euros to 93.
5 euros (+3.9%).
The Swiss broker maintains its buy rating on the French construction and concessions group.
Experts have drawn the consequences from the presentations made by Vinci at its investor day held last month. In particular, UBS has updated its forecasts of parameters (growth, investment, asset maturity and regulatory conditions) that affect the group's cash generation, a key element in the valuation of Concessions. This has led to UBS increasing its estimate for the value of assets of the Airport Concessions sub-division by 23%, due to ANA in Portugal and Kansai in Japan.
In general, UBS welcomes Vinci's "successful" investment strategy, including its redeployment to airports. "Despite significant amount of competition from industrial and financial investors, Vinci has demonstrated that it can identify opportunities where value can be created," UBS writes in its report.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
5 euros (+3.9%).
The Swiss broker maintains its buy rating on the French construction and concessions group.
Experts have drawn the consequences from the presentations made by Vinci at its investor day held last month. In particular, UBS has updated its forecasts of parameters (growth, investment, asset maturity and regulatory conditions) that affect the group's cash generation, a key element in the valuation of Concessions. This has led to UBS increasing its estimate for the value of assets of the Airport Concessions sub-division by 23%, due to ANA in Portugal and Kansai in Japan.
In general, UBS welcomes Vinci's "successful" investment strategy, including its redeployment to airports. "Despite significant amount of competition from industrial and financial investors, Vinci has demonstrated that it can identify opportunities where value can be created," UBS writes in its report.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.