Oddo BHF raises its opinion on Getlink from 'neutral' to 'outperform', with a price target raised from 16 to 20 euros, now including a speculative premium of 30% on its fundamental valuation based on a DCF of 15.5 euros.

In its note, the research firm mentions the idea of a merger with Eiffage (downgraded to 'neutral' with a target reduced to 112 euros), pointing out that a merger of equals 'would give birth to a new champion concession builder'.

'Eiffage is underperforming and seems to us to be paying for the lack of a structuring acquisition. To change status, Spie and renewable energies can wait, the chosen one is Getlink...', explains the analyst in charge of the dossier.

While acknowledging that 'the equation for a takeover of Getlink remains complex', Oddo BHF believes that an ambitious solution would be to convince Getlink of a merger of equals in the form of a 'reverse takeover' project.

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