Insight Investment Research LLP

Insight Investment Research is a top ranked sell side boutique dedicated to Global Infrastructure equity research. We leverage extensive equity research experience, industry knowledge and strong corporate relationships to produce differentiated independent research and provide new insights on infrastructure stocks (toll roads, airports, telecom towers) and the industry to global institutional investors.

We provide clients with timely, concise and in depth reports based on detailed company and industry models. Coverage includes twenty five stocks across the Infrastructure sector across Europe, South America and Asia Pacific. We are expanding our integrated global coverage in a sector almost exclusively covered by regional analysts.

Why Insight?

Members research

Flagship reports
  • Ferrovial: A roadmap for higher shareholder remuneration
    19 Jul 2019

    We expect after selling Services (est. proceeds €1.3bn in 2020E) Ferrovial will have sufficient capital to invest in new projects and raise shareholder remuneration. Our roadmap for shareholder remuneration includes a €1bn share buyback to raise exposure to 407-ETR and the ML.s and higher ongoing dividend growth backed by raised 407-ETR distributions.
  • Transurban: New DCF value accretion for Washington ML extensions
    03 Jul 2019

    Transurban has a strong record extending its existing concessions and the I-395 and I-95 Fredericksburg Extension will extend its successful Washington managed lane network. We expect reasonably priced time savings and our new DCF.s estimate attractive value accretion.
  • Ferrovial: New DCFs estimate value accretion for I-66 and I-77
    08 Jun 2019

    Given success of the NTE, LBJ and NTE-35W, the I-77 has partially opened and potential for more projects, we expect the market to increasingly focus on Ferrovial’s managed lanes (ML.s). Our new DCF.s estimate good value accretion for the I-66 and I-77. N. American toll roads with congestion pricing are 68% of EV in our SOTP, including the ML.s with 24pp.
Latest reports
  • Sydney: H1: Reducing traffic offset by lower bond yields
    15 Aug 2019

    SYD’s H1 EBITDA of A$649m, +4.1% YOY was 1% below Insight. We reduce our traffic, EBITDA and EPS but as SYD is the most sensitive stock in our global infrastructure universe to significantly lower bond yields, our TP rises to A$16.6. Marking to market a lower COC each year until 2097 far more than offsets flat near term traffic in one year in 2019.
  • CCR: H1: Raising TP to R$11.8 on traffic and COC but still SELL
    14 Aug 2019

    H1 2019 adj. EBITDA of R$2,762m, +21% YOY was in line Insight and 2% below consensus. We raise our traffic in 19 and our EBITDA slightly in 19-20E but significantly lower our EPS on higher depreciation and financial charges. We raise our TP to R$11.8 due to our higher EBITDA and lower Brazilian bond yields reducing our COC but maintain our SELL.
  • PINFRA: H1: Reducing Concessions EBITDA and TP to MX$296
    13 Aug 2019

    PINFRA H1 19 Concession EBITDA of MX$3,047m, +0.6% YOY, was -14% below Insight. We significantly reduce our traffic and EBITDA but lower Mexican bond yields reduce our COC, thus our TP is little unchanged at MX$296. In our view, the deterioration in financial disclosure has become critical and if not improved we may need to add a risk premium to our COC, which arguably has already been applied by the share price (-16% since 1 July).
  • Transurban: FY 19: High optimisation, limited upside vs global peers
    11 Aug 2019

    TCL has reported H1 to June 2019 proportional EBITDA (ex. significant items) of A$2,016m, +12% YOY, in line with Insight. We reduce slightly our traffic but raise our proportional EBITDA (mostly inorganic). We raise our TP to A$17.8 due to lower bond yields. Yet we remain a relative SELL as we consider TCL is already so optimised (operationally, leverage, dividends and share price), it has little scope to surprise relative to its global infrastructure peers.
  • Fraport: H1: Raising EBITDA, EPS but TP down to €88, maintain SELL
    08 Aug 2019

    Fraport has reported H1 19 EBITDA of €512m, +10.9% YOY or ex. asset sale €15m and IFRS 16 adoption €23m, +3% YOY, 1% above Insight. We raise our EBITDA and EPS but our TP falls €1 to €88. We remain SELL given our significantly higher infrastructure sector upside.
  • ENAV: H1: EBITDA up on higher margins, TP to €8.0 on lower COC
    07 Aug 2019

    ENAV has reported H1 EBITDA of €115m, +3.2% YOY, 8% above Insight. We raise our EBITDA and EPS mainly from improved margins but we raise our est. tariff cuts in 20E. We raise our TP to €8.0, mainly due to lower 10YR Italian bond yields reducing our COC.
  • Vopak: H1: Raising EBITDA, EPS & TP to €43 but remain Sell
    05 Aug 2019

    Vopak has reported H1 2019 EBITDA ex-exceptionals and IFRS 16 of €398m, +7.3%, 2% above Insight. We increase our EBITDA in 19E (although largely as we convert our P&L to IFRS 16) and EPS estimates. We reverse out the significant non-cash benefit of IFRS 16 in our DCF. We raise our TP to €43, mainly due to lower bond yields reducing our COC.
  • Vinci: H1: D/g to SELL on below global sector upside
    01 Aug 2019

    Vinci has reported H1 ’19 EBIT of €2,289m (+9.1% YOY), 2% below Insight. We raise Concessions EBIT but reduce Contracting EBIT. We reduce our TP to €113, mainly on higher net debt. We consider Vinci’s assets and management high quality but we downgrade from BUY to SELL as we est. only 21% upside, below our global infrastructure universe av. of 48%.
  • ADP: H1: TAV P&L volatility but TP up to €298 on lower COC
    31 Jul 2019

    ADP has reported H1 19 EBITDA of €764m, +10.6% YOY or +6.3% LFL. We adjust our EBITDA and EPS, mainly due to P&L volatility from TAV’s Istanbul concession ending, yet TAV is only 2% of our SOTP. Our TP rises slightly to €298.
  • Ferrovial: H1: Construction a distraction, raising ML valuation
    31 Jul 2019

    Ferrovial has reported H1 19 EBIT ex. impairments and disposals of -€190m (€185m in H1 18), below Insight -€167m. Ex. the €345m provision in Construction in Q1, EBIT was €155m. We consider ongoing Construction losses frustrating but provide an ideal opportunity to gain exposure to the fantastically performing Managed Lanes, leading us to raise our TP to €43.
  • GAP: H1 19: Raising TP to MX$191 on higher EBITDA growth
    30 Jul 2019

    GAP has reported H1 2019 EBITDA of MX$4,928m, +12.6% YOY, -1% below Insight. We incorporate guidance on WACC and capex for the next regulatory period 2020-24 and we include Kingston airport from October 2019. Our TP rises to MX$191.
  • Aleatica: H1 19: Reducing traffic but TP resilient at MX$40
    29 Jul 2019

    Aleatica has reported H1 2019 cash toll EBITDA of MX$2,894m, +7% YOY (adding back the higher non-cash maintenance provision MX$337m), 3.5% below Insight MX$2,970m. We reduce our traffic after continued weakness in Q2 and our Toll EBITDA, although we still est. EBITDA growth. Our TP rises to MX$40 due to lower Mexican bond yields, reducing our COC.

Why Insight? 

We understand our clients needs, produce research product to achieve them, do what we say we will do, have fun and play to win. 

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Our approach

A niche non traditional sector requires a specialist solution. We concentrate on thoughtful, thorough, insightful analysis not maintenance research and challenge market views. 

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