(News Bulletin 247) – Morgan Stanley on Monday raised its recommendation on Getlink to ‘overweight’ against ‘online weighting’, with a price target raised from 18.3 to 19 euros, believing that a favorable scenario was in the works. draw around the title.
In a note released in the morning, the intermediary recalls that the operator of the Channel Tunnel has been able to benefit so far from a constant element in recent years, namely the solid control of its prices.
According to him, the group could further strengthen its advantage thanks to the current difficulties faced by ferry companies, facing both rising wages and future payments due to their CO2 emissions.
In the medium term, these factors could boost Getlink’s annual Ebitda between 50 and 60 million euros, or an addition of 1.5 to two euros to the level of the stock market, according to the analyst.
Morgan Stanley also acknowledges having been too cautious regarding the recovery of the tourism and leisure sector, which has led it to revise its traffic forecasts for 2023-2025 upwards, representing a bonus of 1.5 euros per title.
Finally, concerning ElecLink – the high-voltage interconnection cable which passes under the cross-Channel tunnel – the professional mentions payments likely to surprise on the rise in the medium term given the current needs of the electricity market, an element which could add an additional 1.1 euro per title.
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