(CercleFinance.com) – Oddo BHF maintains its ‘outperform’ rating on Vinci with an unchanged price target of 138 euros.
The analyst reports that Vinci organized a CMD (investor day) in Madrid dedicated to its latest structuring acquisition Cobra.
This structure, which presents itself as a specialist in industrial engineering applied to various sectors (energy, industry, telecommunications or mobility) represents 25% of the turnover of the Energy division and displays an EBIT margin of 7.4% (vs VINCI Energy <7%) , and employs ~42,000 people.
In this context, Oddo BHF says it is ‘completely convinced that Vinci’s performance in 2024 could be supported by better valuation of renewable activities’. On the other hand, ‘in the short term and after the good performance driven by the expectations of the CMD, the performance could be less glorious’.
The broker adds that the current valuation seems particularly attractive in a context of good operational performance (FCF yield 2024e of ~7% and a dividend yield of ~4%). “A resumption of discussions with the French government around a highway decarbonization plan would also constitute a catalyst,” concludes the analyst.
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