As next year’s French presidential election approaches, one of candidate Marie Le Pen’s policies is to nationalise all toll roads and drop tolls -10-15%. History suggests, the broker notes, such moves lead to concession holder compensation.
While Macron remains clear favourite, the chance of concession extensions pre-election are less likely if toll roads draw political focus, the broker notes. Neutral and $6.52 target retained.
Sector: Transportation.
Target price is $6.52.Current Price is $6.73. Difference: ($0.21) – (brackets indicate current price is over target). If ALX meets the Macquarie target it will return approximately -3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
