BofA lifts Eiffage stock target to EUR150, maintains buy rating

Published 23/05/2025, 08:20
BofA lifts Eiffage stock target to EUR150, maintains buy rating

On Friday, BofA Securities updated its stance on Eiffage (EPA:FOUG) SA (FGR:FP) (OTC:EFGSY), increasing the price target to €150.00 from the previous €145.00 while reaffirming a Buy rating for the stock. The revision reflects a positive outlook on the company’s future earnings growth potential, particularly for the year 2026, and its robust operational performance.

The firm’s analysts highlighted that despite the year-to-date strong re-rating of the European infrastructure sector, Eiffage’s current valuation remains appealing. The stock is trading at 12.3 times the projected 2025 earnings per share (P/E) and 9.9 times the 2026 earnings forecast, which is notably below its 10-year average P/E ratio of 13.8 times.

BofA Securities anticipates that Eiffage will benefit from its significant presence in Germany, which represents around 10% of the group’s sales, and expects the company to experience strong thematic support. The analysts also foresee an improvement in cash returns and continued solid operational execution.

In their analysis, the firm assumes that the French corporate tax rate will decrease from 36.1% to the statutory level of 25.8% starting in 2026, positively impacting Eiffage’s earnings. The raised price objective to €150 is partly due to higher earnings forecasts for 2026, with an expected 3% increase in earnings per share, and an uptick in the market value of Eiffage’s stake in Getlink.

The new price objective suggests approximately 20% upside potential for Eiffage shares. BofA Securities also included Eiffage in their Q2 list of Best Ideas, indicating a strong conviction in the stock’s performance prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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