Eiffage: Oddo BHF confirms 'buy' rating
(CercleFinance.com) - Oddo BHF confirms its "buy" rating on the Eiffage share (with a target price of 103 euros), judging that its underperformance relative to Vinci (respectively -5% and +10% over 12 months) seems difficult to justify.
It notes that both groups benefit from a favourable interest rate environment and solid operational momentum, and that with an adjusted free cash flow yield of 11.1% (against 6.6% for Vinci), Eiffage's valuation is particularly attractive.
The analyst adds that while Eiffage's external growth strategy raises questions, he believes that risks are exaggerated and that the group could soon clarify its strategy.
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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.
It notes that both groups benefit from a favourable interest rate environment and solid operational momentum, and that with an adjusted free cash flow yield of 11.1% (against 6.6% for Vinci), Eiffage's valuation is particularly attractive.
The analyst adds that while Eiffage's external growth strategy raises questions, he believes that risks are exaggerated and that the group could soon clarify its strategy.
Copyright (c) 2019 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.