Vinci’s Q3 Sales Exceed Precoronavirus Levels and Guidance Is Maintained; Shares Are Fairly Valued

Our investment thesis for narrow-moat Vinci remains firmly intact after a solid third-quarter sales update. Vinci has benefited from a strong construction market and a recovery in traffic across its Autoroutes business, which managed to offset weakness in the airports business due to ongoing travel restrictions. Third-quarter revenue grew 8% against a weak prior year. Year-to-date revenue grew 16.5% to EUR 35.8 billion and is impressively 2.8% higher than 2019. Full-year guidance was reaffirmed. We maintain our EUR 90 fair value estimate despite making minor updates to our forecasts.