Morgan Stanley analyst Nicolas Mora upgraded the rating on Actividades de Construccion y Servicios SA to a Buy yesterday, setting a price target of €150.00.
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Nicolas Mora has given his Buy rating due to a combination of factors tied to ACS’s successful strategic shift toward data‑center related construction and services. Over the past several years, the company has evolved from a relatively overlooked contractor into a key global player in data‑center “pick and shovel” infrastructure, with its Turner unit driving strong growth and margin potential that the market is only partially pricing in.
He also sees meaningful additional upside from expected near‑term earnings revisions, particularly higher EBITDA from data‑center volumes and profitability, along with substantial value creation from a new co‑development joint venture in this segment. On top of that, he highlights further optionality from U.S. managed lanes, infrastructure margin improvement, German infrastructure exposure, Abertis, defense and critical minerals, while noting that theme fatigue around AI/data centers, slower JV ramp‑up and structural complexity are the main risks but do not outweigh the attractive risk‑reward and capital allocation flexibility versus peers.
According to TipRanks, Mora is a 5-star analyst with an average return of 10.5% and a 74.03% success rate.
In another report released on April 10, UBS also maintained a Buy rating on the stock with a €120.00 price target.