Vinci Upgraded to Buy, 23% Upside Target
Kepler Cheuvreux raised its rating on Vinci SA (EPA:SGEF) from Hold to Buy on Friday, citing an attractive valuation after a recent decline in the share price. The broker increased its target price to €146.50 from €143.00, which represents roughly a 23 % upside from the July 9 closing price of €119.35.
Vinci’s shares have fallen about 17 % since late February, underperforming the broader market as investors grew cautious about several issues: the sensitivity of motorway traffic to higher oil prices, weaker‑than‑expected contracting revenue in the first quarter, and concerns over France’s proposed infrastructure‑specific tax measures.
Kepler argues that these concerns are now fully reflected in the current valuation and do not alter the group’s long‑term investment case. The brokerage highlights Vinci’s diversified portfolio of motorway concessions, airports and contracting operations, which it says provides resilient earnings and cash flow and supports a more constructive stance on the shares.
The analyst notes that the recent sell‑off has opened an entry point for investors seeking exposure to a defensive infrastructure operator with long‑duration assets and recurring cash generation. Attention will now turn to Vinci’s upcoming earnings report, where investors will look for updates on motorway traffic trends, airport passenger volumes and the outlook for its contracting business following a softer start to the year.