Ferrovial’s consensus price target was revised upwards, driven by robust earnings momentum, expansion in North America, and higher expected returns from core assets, partially offset by macroeconomic and valuation concerns, resulting in a modest increase in fair value from €47.62 to €48.54.
Analyst Commentary
- Bullish analysts cited robust earnings momentum and improved visibility in Ferrovial’s core infrastructure assets as key drivers for upward price target revisions.
- Upgrades factored in the company’s successful expansion in North American markets, contributing to diversified revenue streams.
- Increased efficiency in project execution and higher expected returns from toll road concessions were highlighted as positive catalysts.
- Slight downward price target adjustment reflected cautious views regarding macroeconomic headwinds and near-term cost pressures affecting the sector.
- Bearish analysts expressed concerns over valuation after the strong share price rally, as well as potential regulatory risks impacting future growth forecasts.
What's in the News
- Ferrovial will develop a 250 MW solar photovoltaic facility in Milam County, Texas, investing about $355 million.
- The project will create nearly 300 construction jobs and is expected to generate power for 43,000 homes by 2027.
- The facility will deliver approximately 450 GWh of electricity annually to the Texas grid.
- This project expands Ferrovial's energy portfolio in Texas, complementing a 257 MWdc plant in Leon County and nearing completion of a 72 MW PV plant in Houston for X-Elio.
Valuation Changes
Summary of Valuation Changes for Ferrovial
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from €47.62 to €48.54.
- The Future P/E for Ferrovial remained effectively unchanged, moving only marginally from 49.92x to 50.89x.
- The Discount Rate for Ferrovial remained effectively unchanged, moving only marginally from 7.48% to 7.51%.
Disclaimer
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