Vinci: a buyer, UBS deems consensus conservative
(CercleFinance.com) - This morning UBS welcomed the quarterly trading update presented by the French construction and concessions group Vinci.
As a result, the broker confirms its buy rating on the stock, as well as its 12-month target price of 93.5 euros, meaning upside potential of around 20%.
The group's organic sales growth reached 4.3% in Q3, hence exceeding the consensus by around 3%. The main growth drivers included: the increase in motorway traffic (+3.4%, in these same terms) and that of airports (+8.6%), for concessions. Although less profitable, construction and civil engineering has not remained on the sidelines, with 4.9% growth - about 4% above expectations - with the performance of Eurovia and Vinci Energies having improved.
UBS also highlights a "strong" order intake: +10% in Q3 y-o-y, and still +5% excluding acquisitions, despite a relatively unfavourable comparison basis.
Finally, although Vinci has left its forecasts unchanged, UBS believes that the consensus "seems conservative": according to analysts, it only anticipates earnings growth of 1% in the second half, which seems low in light of the group's growth.
Copyright (c) 2018 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.
As a result, the broker confirms its buy rating on the stock, as well as its 12-month target price of 93.5 euros, meaning upside potential of around 20%.
The group's organic sales growth reached 4.3% in Q3, hence exceeding the consensus by around 3%. The main growth drivers included: the increase in motorway traffic (+3.4%, in these same terms) and that of airports (+8.6%), for concessions. Although less profitable, construction and civil engineering has not remained on the sidelines, with 4.9% growth - about 4% above expectations - with the performance of Eurovia and Vinci Energies having improved.
UBS also highlights a "strong" order intake: +10% in Q3 y-o-y, and still +5% excluding acquisitions, despite a relatively unfavourable comparison basis.
Finally, although Vinci has left its forecasts unchanged, UBS believes that the consensus "seems conservative": according to analysts, it only anticipates earnings growth of 1% in the second half, which seems low in light of the group's growth.
Copyright (c) 2018 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.