Return to Healthy Profitability at Vinci’s Airports Drives Strong H1; Shares Offer 10% Upside

Narrow-moat Vinci delivered strong first-half results, reporting organic revenue growth of 11.8% or 26.1% including acquisitions. Impressively, operating profit grew by 81% largely driven by the airport division's return to healthy profitability. All other operating segments were also able to deliver EBIT margin expansion, highlighting the group’s defensive characteristics through its portfolio of long-dated concession assets such as toll roads and airports. We plan to tweak our short-term forecasts slightly for better-than-expected airport segment profitability, but don’t expect to materially change our EUR 101 fair value estimate. We view shares as slightly undervalued.