On Wednesday, J.P. Morgan initiated coverage of Getlink shares with a Buy recommendation and a two-year price target of 19 euros.

In a research note, the analyst praises the diversification of the group, which holds the concession for the Channel Tunnel until 2086, into rail freight (Europorte) and energy infrastructure (ElecLink).

The intermediary points out that Getlink shares have largely underperformed the market this year, and are now trading on an Enterprise Value/Ebitda 2024 ratio of 13.5x, compared with its long-term average of 18.5x.

J.P. Morgan points out that, at these levels, the share price sufficiently takes into account the uncertainties surrounding the business in the short term, but underestimates the price control from which the Group benefits.

Nevertheless, J.P. Morgan considers the stock to be an attractive long-term investment, particularly in view of its exposure to the green growth theme.

In an ideal bull case scenario, the stock could reach 22 euros in June 2025, he concludes, corresponding to a potential appreciation of 40%.

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