Construction sector stocks trailed the main Paris index on Tuesday, weighed down by a note from Bank of America. Saint-Gobain (-3.69% at 83.62 euros) was the biggest loser on the CAC 40, closely followed by Eiffage (-3.59% at 120.95 euros) and Vinci (-3.48% at 117.80 euros). "We are becoming progressively much more cautious regarding French concession sector stocks," BofA stated, having downgraded Eiffage to Neutral and Vinci to Underperform.
Concerns are mounting over both a potential tightening of fiscal policy in France and what are seen as weak organic growth prospects for the 2026 and 2027 financial years.
The American bank said it now favors "infrastructure groups exposed to the United States and European airports showing positive inflections in their free cash flow." Its preferred stocks are Ferrovial, ACS, Zurich Airport, Sacyr, and National Grid.
Eiffage and Vinci are also being impacted by the French government’s intention to levy 2.5 billion euros from motorway concessionaires to fund infrastructure projects, a measure that will mechanically weigh on their profits.
This scenario, still distant, depends on a future programming law.
Eiffage S.A. is the No. 5 European group of building and civil engineering works and concessions. Net sales break down by activity as follows:
- construction and maintenance of transportation and civil engineering infrastructures (35.6%): roads, motorways, bridges, railways, etc. The group also produces and markets granulates, coatings, and binders;
- design, execution, and maintenance of electrical, climate-control, and mechanical engineering facilities (30.8%);
- building construction and renovation (17%): residences, offices, shopping centers, parking lots, stadiums, prisons, hospitals, etc. Eiffage S.A. also develops and sells real estate;
- construction and concession management of infrastructures and works of art (16.6%).
Net sales are distributed geographically as follows: France (66.1%), Europe (30.4%) and other (3.5%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.
