French Government Plans Transport Tax Hike, Spotlight on French Road and Airport Stocks
Deep News
Sep 29
France plans to raise the transport infrastructure tax in its 2027 budget, which could trigger volatility in shares of French airport and road operators.
Companies such as ADP, Eiffage, and Vinci may become market focal points.
Morgan Stanley analysts said that if the tax increase is implemented, Vinci's 2027 net profit could take a 9% hit, with per-share valuation reduced by 4.5 to 5 euros.
Eiffage's 2027 net profit could fall by 10%, with per-share valuation damaged by 6.5 to 7 euros.
ADP's 2027 net profit may face 12% pressure, with per-share valuation affected by 4.5 to 5 euros.
The yield spread between French government bonds and German government bonds is about 113 basis points.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.