PORR : Higher confidence in margin trajectory meets more attractive valuation – Upgrade to Outperform
On the back of a target price increase to € 41.5 from € 36, we upgrade PORR from Neutral to Outperform. We believe that the recent share price weakness, in the wake of the broader market retreat triggered by spillover effects from the war in Iran, has created an opportunity to (re-)enter the investment case at a more attractive valuation. The slight over-delivery in terms of its earnings/margin targets for 2025 adds credibility to the investment story, which we consider to be centered around margin- and top line-driven earnings growth. We also appreciate the potential for gradually improving balance sheet quality. These factors are supported by strong visibility, given the record order book and very solid market fundamentals.PORR is engaged in the building construction, structural and civil engineering, road construction and infrastructure construction. Co. also operates the construction branches of planning, development, execution and operation. Co. also coordinates the supraregional activities of the construction branch subsidiaries. Co. is engaged in the contruction of buildings and industrial plants; revitalizing protected architectural treasures; general contractor services, project planning and development; railway construction; foundation engineering; power-plant, tunnel, underground rail and traffic route construction; environmental engineering and prestressing technology.
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
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