The stock of Salini Impregilo, which, following the presentation of the new 2016/2019 business plan, yields more than 11% to Business Square in the morning, returning to the lowest levels since February, at 3,238 euros per share.
It was precisely the industrial plan that dragged the company's prices into the dust, which did not convince analysts and investors. Intermontein fact, it "cut the estimates for 2016 to include the delay of some projects in Italy while we raised them for 2018", maintaining the "buy" judgment, but lowering the target price to 5,1 euros.
Similar remarks also by Banca Akros, who lowered the judgment to “accumulated”: “The 2016 targets are lower than our estimates. Most of the growth envisaged in the plan is not expected to materialize before 2018”. The institute, for the long term, is confident in the focus on the United States of the group, praising the timing of the acquisition of Lane.
The industrial plan of Salini Impregilo was also rejected by Equita Sim, which cut the target price, maintaining the "Buy" recommendation on the stock, and by Chevreux, which cut the rating on the construction group from "buy" to "hold".
The industrial plan
The construction company's plan provides for a pay-out ratio of 40% in 2019, compared to the previous 2'%, while estimated revenues for 2019 are 9 billion euros, of which over 30% in the United States. The group also expects to achieve an ebitda margin of 10% and an order book of 39 billion in construction alone.
The expected growth is guaranteed by an order portfolio which ensures approximately 70% of total revenues and 80% of EBITDA for the next four years. For the current year, however, estimates by Salini Impregilo speak of 6,1 billion in revenues, an EBITDA of over 9% and net debt in line with that of 2015.
Koysha Dam
During the presentation of the plan, the Salini Impregilo group announced that it had signed a new 2,5 billion euro contract for the construction of the Koysha dam in Ethiopia. The dam was commissioned by Ethiopian Electric Power (Eep) and will be 170 meters high, with a reservoir volume of 6000 million cubic meters and an annual energy output of 6460 GWh.
With this order, the order book of the group active in construction in America Australia and Africa in the first 4 months of the year exceeded 4 billion. In addition to the contract for the dam in Ethiopia, Salini Impregilo has obtained new orders for over 1,2 billion dollars in the United States through the American subsidiary Lane, and for 633 million for the New Rail Line of Perth in Australia.
