JPM sees deep value for 2025 in French infra stocks despite political uncertainty
05/12/2024 07:37
** J.P.Morgan sees deep value in French infrastructure names
despite political uncertainty, as it lays out its 2025 outlook
on European infrastructure and construction sector
** A no-confidence vote on Thursday evening toppled the
French government and plunged the euro zone's second-biggest
economy further into political crisis
** "The elevated political uncertainty in France is
understandably making investors wary of French assets but has
created unprecedented entry points for longer term investors" -
JPM
** It sees scope for French companies to re-rate if/when
political visibility improves, with current valuations
representing political issues rather than company fundamentals
** Aside from politics, JPM notes sector fundamentals are
generally supportive, and points to encouraging traffic trends
seen in 2025, strong order books in contracting/energy, and
easing European bond yields
** Getlink GETP.PA remains JPM's top pick as it expects to
see an inflexion in the Shuttle traffic in 2025 and several
long-term catalysts
** It keeps "overweight" rating on Vinci SGEF.PA and
Eiffage FOUG.PA
** In airports, it sticks to the recently hiked "overweight"
rating on ADP ADP.PA and "neutral" on Aena AENA.MC , and says
it is relatively more cautious on "neutral"-rated Fraport
FRAG.DE
(Reporting by Anna Pruchnicka)
((anna.pruchnicka@tr.com))