< The 2014 All-Europe Research Team
Vincent Laurencin, 37, and his troupe at Exane BNP Paribas extend their winning streak to a fifth straight year, in part because they are “very good at picking up information on what’s changing at companies” and “very accessible for wide-ranging discussions on industries and important themes and trends,” as one advocate puts it. The analysts cover 142 French names, working from London and Paris. Favorites include Rueil-Malmaison’s Vinci, a general contractor, and Paris-based advertising giant Publicis Groupe. The world’s largest construction company, by revenue, Vinci is undervalued as a concessionaire, Exane’s researchers contend. “Over time, Vinci will gradually rerate,” says Laurencin, “as the market comes to better appreciate the quality and growth” of the company’s operations in that segment, which include airports, public-private partnerships and toll roads. The stock was trading at €47.72 at year-end 2013, and the analysts believe that with a resilient French economy and strong international exposure underpinning Vinci’s construction business, the share price can rise as high as €55, while earnings per share should enjoy a 10 percent compound annual growth rate over the next three years. Regarding Publicis, the team is bullish as the agency works toward merging with New York–based rival Omnicom Group to form a global powerhouse with “size, scale and a high level of competence across all the aspects of the business in every geographic area,” says Laurencin, who also captains a team that merits a runner-up position for coverage of Iberia. “Client fallout will be minimal and manageable, and the final cost synergies will surprise on the upside,” he adds. The deal is expected to close by midyear. See also Vincent Laurencin's profile in the 2013 All-Europe Research Team and 2012 All-Europe Research Team. |
