Citi raises Vinci shares target on acquisition benefits By Investing.com

On Friday, Citi updated its financial model for Vinci SA (EPA:) (DG:FP) (OTC: VCISY) shares, leading to an increased price target to €145.00, up from the previous €135.00. The firm maintained a Buy rating on the stock. The adjustment reflects the recent strategic acquisitions made by Vinci, including Edinburgh Airport and the Northwest Parkway toll road in the United States.

The updated model from Citi indicates an approximate 1% and 3% increase in Vinci’s EBITDA for the fiscal years 2024 and 2025, respectively. Vinci’s Airport segment is anticipated to continue to be a major contributor to the company’s revenue and margins in the near term. This is due to the expectation that traffic will remain lower in the Autoroutes segment, which has seen a year-to-date decrease of 1.2%.

Despite the positive outlook for the Airport segment, Citi forecasts Vinci’s free cash flow (FCF) to face challenges in FY24 due to an anticipated rise in working capital needs and higher capital expenditures, particularly within the Concessions segment. The FCF is projected to reach around €4.5 billion, which is slightly below the Visible Alpha consensus of €4.7 billion.

Nevertheless, Citi’s projections for Vinci’s EBITDA remain optimistic, standing 2-4% above the Visible Alpha consensus for FY24 and FY25. The increase in the price target to €145 from €135 is a reflection of Citi’s revised estimates, signaling confidence in the company’s financial performance following its recent expansion efforts.

InvestingPro Insights

As Vinci SA (VCISY) continues to expand its operations through strategic acquisitions, real-time data from InvestingPro provides additional context for investors monitoring the company’s performance. Vinci’s market capitalization stands at a robust $63.35B, indicating its significant presence in the industry. The company’s P/E ratio, at 12.17 for the last twelve months as of Q4 2023, suggests a reasonable valuation relative to its earnings. Additionally, Vinci’s revenue growth of 11.79% during the same period highlights its capacity to increase its top-line figures.

InvestingPro Tips reveal that Vinci has been consistent in rewarding shareholders, having raised its dividend for 3 consecutive years and maintained dividend payments for 27 consecutive years. This consistency in dividend payments, coupled with a dividend yield of 5.89% as of April 2024, makes Vinci an attractive stock for income-focused investors. Moreover, the company’s moderate level of debt and low price volatility add to its investment appeal. For investors seeking further insights, there are additional tips available on InvestingPro, which can be accessed through Vinci’s dedicated page: https://www.investing.com/pro/VCISY. To get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, use the coupon code PRONEWS24.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.