(News Bulletin 247) – JP Morgan initiated coverage of Getlink shares on Wednesday with a buy recommendation and a price target of 19 euros over a two-year horizon.
In a research note, the analyst welcomes the diversification operated by the group, concessionaire until 2086 of the Channel Tunnel, in the fields of rail freight (Europorte) and energy infrastructure (ElecLink).
The intermediary underlines that the title Getlink has however largely underperformed the market this year, to now be traded on an enterprise value / EBITDA 2024 ratio of 13.5x, against its average of 18.5x over the long term.
At such levels, notes JP Morgan, the title sufficiently incorporates the uncertainties surrounding short-term activity, but underestimates the price control from which the group benefits, he adds.
The professional nevertheless considers that the stock constitutes an interesting case in the long term, particularly in view of its exposure to the theme of green growth.
In an ideal scenario (‘bull case’), the title could thus reach 22 euros in June 2025, he concludes, which corresponds to a potential appreciation of 40%.
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