(CercleFinance.com) – Vinci gains more than 3% in Paris, well helped by Berenberg who today initiated coverage of the stock with a buy recommendation and a price target of 105 euros, touting the ‘solid assets’ available to the French construction and concessions group.
The intermediary highlights (1) the defensive profile of the company which he believes protects it from inflationary pressures and (2) its intelligence in terms of capital allocation, which has enabled it to generate an ‘impressive’ ROCE of 9 % over the period 2011-2019.
Berenberg also stresses that (3) its motorway infrastructure operating division (approximately 50% of operating profit) provides significant resistance to the group’s cash flow.
The analyst also explains (4) to perceive an upward potential at the level of the airport platforms and (5) to appreciate the particular strategic attention that the company pays to its construction activities.
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