Citi turns selective on European infrastructure, ups Eiffage, cuts Ferrovial, Vinci
BUZZ-Citi turns selective on European infrastructure, ups Eiffage, cuts Ferrovial, Vinci ** Citigroup says performance of European rail and road infrastructure stocks reflects investor demand for long-duration and defensive cash flows offered by concession assets
** Says "valuation upside from duration alone is increasingly exhausted" and sees selective opportunities based on asset mix and earnings upside
** Upgrades French construction and engineering company Eiffage FOUG.PA to "buy" from "neutral", saying the market overly discounts its contracting business and does not appreciate free cash flow generation
** Reiterates "buy" on French railway operator Getlink GETP.PA as Eurotunnel growth is not fully reflected in shares, alongside support from potential earnings upside in Eleclink
** Citi cuts Spain's Ferrovial FERF.AS and France's Vinci SGEF.PA to "neutral" from "buy", citing limited upside from Ferrovial's current asset base and Vinci's airport exposure, which may weigh on shares versus peers
(Reporting by Marta Serafinko in Gdansk)