Business Services, Transport, Leisure and Infra & Building Materials Conference — Key Takeaways

Research evidence excerpt

Business Services, Transport, Leisure and Infra & Building Materials Conference — Key Takeaways

Goldman Sachs Europe

additional headroom from more individualized pricing.

n Pipeline: FER will maintain its return criteria and financial discipline when it comes

to new projects (unchanged), and sees a significant pipeline of projects in the years

ahead.

Getlink

n Trading: Higher bunker adjustment factors applied by the ferries are leading to

slightly better market share dynamics in truck. In car, the company has started to

unbundle various premium services, and uses this to further improve revenue

management. Overall, Getlink is confident in its ability to continue to grow unit

revenue > inflation.

n Rail. With access to depots secured for both Virgin and Trenitalia, and capacity

expansion works in St Pancras and Gare du Nord, the only bottleneck left is access to

rolling stock (from Alstom for Eurostar and Virgin, and from Hitachi for Trenitalia).

The competitive dynamic (incentive to be the first to launch) creates a positive

backdrop according to the company.

Valuation & Key Risks

Price Target Risks and Methodology - Aeroports de Paris

We are Neutral rated on ADP, with a 12m DCF-based SOTP price target of €126. Key

risks include higher/lower than-expected retail spend, higher/lower traffic, and

regulation.

Price Target Risks and Methodology - Getlink

We are Buy rated on Getlink with a 12-month price target of €21.5 (70% DCF/30% M&A

valuation derived from a target multiple of 26x 2027E EV/EBITDA, based on precedent

transactions). Key risks to our view and price target include: idiosyncratic incidents; cost

and capex discipline lower than forecast; a high level of fixed costs,

lower-than-expected earnings could also pose financial risks and impair the company’s