Acciona: Low-hanging fruit has been picked
We are raising our FV for Acciona to Eur82/sh (Eur81/sh before) but downgrade our recommendation from Buy to NEUTRAL. We rolled over our FV to 2019 while also revising our estimates, with an underlying positive revision of EBITDA/Rec EPS being offset by the deconsolidation from EBITDA of the lost ATLL concession from 2019E onwards. For us, the small upside to the new FV reflects the fact that the market has already priced in the positive developments in Acciona’s equity story during 2018, like asset disposals and the ongoing strong demand for renewable assets (65% of EV) from financial investors, utilities and energy companies. The implied Energy valuation (8.5x EV/EBITDA 18E) is still below deal metrics in the Iberian renewables space (9x EBITDA), but in the absence of evidence that any corporate move is near, we would not expect the implied Energy valuation to move much higher. Consequently, we consider it is time to take a less bullish view and go to NEUTRAL.Acciona is the parent company of a construction group. Co. is engaged in general construction activities in the areas of civil engineering and buildings, including railways, marine and hydraulic works, motorways and airports, town planning, conduits, pavements, parking lots, and industrial and urban buildings. In addition, Co. is engaged in the provision of real estate services, the operation of parking lots, telecommunications, services, ecology and alternative means of energy. Co.'s operations are organized in six business divisions: Infrastructures, Real Estate, Energy, Water, Environmental & Urban Services and Logistic & Transport Services.
Haitong is the first international Chinese investment bank and our goal is to be the primary channel for capital flows into and out of China. During 2015 the Senior Management Team in London was expanded significantly to focus on this objective and to provide a full-service cross-asset markets business coupled with sector-focused investment banking. We work closely with our world-wide network of offices to bring a true depth of understanding to all client situations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.