Buy signal on Vinci (DG-FR)
Our system also triggered a bullish Tactical signal on January 24, that suggest a bullish acceleration. Vinci has a reasonnable track record, with a Behavioral score of 5/10, therefore the bullish signal is to be considered as mainly Strategic.
Vinci is a € 58.2 Bn market cap company which is active in the concessions and construction industry worldwide. It manages three segments: Concessions, Contracting and VINCI Immobilier. Concessions covers the concessions management activities through VINCI Autoroutes (motorways in France), VINCI Airports (airports in France and abroad) and Other concessions (different infrastructures in France and abroad). Contracting comprises VINCI Energies, providing industry services, electrical grid and transport infrastructure, among others; Eurovia, offering building and maintenance of roads, motorways, railways, urban infrastructure, production of asphalt mixes, quarries and VINCI Construction, which designs and constructs buildings, civil engineering infrastructure, specialized civil engineering, water and pipeline infrastructure, among others. VINCI Immobilier is active in different kind of property development.
Concession business represent the bulk of the EBITDA, but was hit hard by the pandemic, especially for the Airports, due to the drop in arline traffic. The construction business should benefit both from the reflation and the reopening of the economy.
For 2021, Vinci is expected to post a € 49 Bn revenue coupled with a € 2.45 Bn net profit (+100% versus 2020). the company is expected to reach again its precovid profitability level in 2022. The current dividend yield stand at 2.6%.
Short term catalyst : Reopening, reflation.
This signal looks consistent with the bullish momentum currently active on thereopening theme.