Wednesday - Bernstein SocGen Group has resumed coverage on Vinci SA (EPA:SGEF) (DG:FP) (OTC: VCISY), issuing an Outperform rating and setting a price target of EUR 141.10. The firm highlighted Vinci’s high-quality attributes and potential for hidden value, despite an uncertain political climate in its home market that may affect investor sentiment. With a market capitalization of $62.39 billion, InvestingPro data indicates the stock is currently undervalued, supporting Bernstein’s optimistic outlook.
The analysis by Bernstein SocGen Group underscores Vinci’s robust financial position, noting its strong balance sheet, solid ESG (environmental, social, and governance) credentials, and reliable management. According to InvestingPro data, Vinci has maintained dividend payments for 28 consecutive years and raised dividends for the past 4 years, currently offering a 1.98% yield. These factors contribute to what Bernstein views as a sustainable and predictable dividend yield for Vinci, which is based on a payout ratio of reported net profit. InvestingPro subscribers have access to 6 additional key insights about Vinci’s financial health and growth prospects.
Vinci’s business model, which combines defensive activities such as concessions with growing traffic and CPI-linked tariffs, along with cyclical activities like contracting with solid backlogs, is seen as advantageous. Supporting this view, InvestingPro shows the company achieved 4.13% revenue growth in the last twelve months, with relatively low price volatility. Bernstein’s reverse valuation approach suggests there is compelling hidden value in the company’s concessions, particularly French motorways, and contracting units.
The current share price, according to Bernstein, implies that the market is undervaluing Vinci’s domestic toll roads, which are known for their predictable cash flows, by assigning them a negative valuation. Furthermore, the contracting units, including Vinci Energies, Vinci Construction, and Cobra IS (excluding renewables), are trading at significantly below Bernstein’s estimated net asset value (NAV).
Bernstein’s valuation also indicates that at current share price levels, Vinci trades at a 2025 P/E of approximately 13.6x, with an estimated 2025 dividend yield of around 4.1% and an average free cash flow (FCF) yield of about 8% for the years 2025-2026. These figures reinforce Bernstein’s positive outlook on Vinci’s investment profile and its Outperform rating.
In other recent news, Vinci SA has received an Outperform rating with a price target of €130.00 from RBC Capital. This development could potentially influence investor perception and market performance of the company. The firm’s positive outlook on Vinci is underscored by strategic initiatives and potential for continued growth in the infrastructure sector. Vinci’s ongoing infrastructure projects, notably the expansion of Gatwick Airport and the Aerodom extension, were highlighted as key catalysts for reinforcing investor confidence in the company’s growth strategy and portfolio management. RBC Capital also noted the quality of Vinci’s contracting business, which they believe is bolstered by the ongoing energy transition. These recent developments highlight Vinci’s capacity for future value creation and its critical role in large-scale infrastructure projects. RBC Capital’s coverage suggests that the market may not fully appreciate this aspect of Vinci’s operations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.