Strong Construction Market Drives First-Half Recovery for Vinci; We Maintain Our FVE

Narrow-moat Vinci has benefited from a strong construction market that managed to offset weakness in the Concessions business due to ongoing travel restrictions. First-half group revenue grew 22% against a weak prior year but is impressively 4% higher than a cleaner 2019 comparative that was unaffected by the pandemic. We were not surprised by management raising guidance for the Contracting segment, which is expected to exceed 2019 levels. Having already incorporated this into our estimates, we maintain our EUR 90 per share fair value estimate.