Stifel maintains its 'hold' rating on Eiffage shares, with a price target lowered from 103.5 to 101 euros.

Stifel believes that the share is fundamentally undervalued, having 'underperformed' the sector over the past year.

In our opinion, the market's concerns are justified. With the APRR concessions coming to an end in 2035 and 2036, the Group needs to reallocate its capital efficiently. In this context, its conservative strategy focused on the mature European market is not necessarily beneficial", analyzes the broker.

"While we expect the outlook for fiscal 2024 to remain resilient, we see no catalyst for a re-rating against its major peers at this time", adds the analyst.

For fiscal 2023, Stifel anticipates sales to increase by +7% to €21.8 billion and EBIT to reach €2.4 billion, implying a margin increase of +10 basis points.


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