🌎 30+ NEW AI-picked share strategies for exciting international marketsUnlock Global AI Picks

Citi raises Vinci shares target on acquisition benefits

EditorEmilio Ghigini
Published 05/07/2024, 06:34 pm

VCISY
1.35%

On Friday, Citi updated its financial model for Vinci SA (EPA:SGEF) (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.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

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.

Should you invest $2,000 in VCISY right now?

ProPicks AI are 6 model portfolios created by Investing.com which identify the best stocks for investors to buy now. The stocks that made the cut could produce monster returns in the coming years. Is VCISY one of them?

Unlock ProPicks AI to find out

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.