FERROVIAL: STILL SOME PETROL LEFT IN THE TANK (ANÁLISIS BANCO SABADELL)
Rate hikes already priced in. BUY.The stock’s recent rout (-12% in 2022; -10% vs. Eurostoxx Const.&Mat) are, in our opinion, due to the expectations of interest rate hikes in the US, which we think are largely priced in (according to our estimates, FER would have risen +80bps BS(e) vs. the +75/100bps we expect for 2022 BS(e)). Also having an effect is the impact from Omicron, which should decrease starting in 2Q’22 BS(e). We cut our estimates by an average of -0.3% in EBITDA’21-23 and we raise our T.P. to € 30.00/sh. (+24% upside; +11% vs. previous T.P.) after rolling over our model to 2022 and improving our valuation of the I-66 highway (+8% on the T.P.), which we adjust to the implicit value of the latest transaction. BUY.
Ferrovial is a transportation company based in Spain. Co. is engaged in operations in the transportation sector. Co. specializes in the design, construction, management, administration and maintenance of transport infrastructures. Co.'s services range also includes the maintenance of parking lots, and land-, sea- and air-based transport networks. Co. is also engaged in the promotion and operation of short-stay parking lots, parking regulation and management services and promotion and sale of residents' parking.
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