Ferrovial (0P2N – Research Report), the Industrials sector company, was revisited by a Wall Street analyst on February 28. Analyst Augustin Cendre from Stifel Nicolaus maintained a Hold rating on the stock and has a €39.50 price target.
Augustin Cendre’s rating is based on a combination of factors that reflect both positive and cautious outlooks for Ferrovial. The company’s recent financial performance exceeded expectations, largely due to gains from Heathrow and strong activity in certain segments. However, there are concerns regarding the limited guidance provided for FY-25 and uncertainties related to Schedule 22, which could impact the stock.
Despite a strong cash position that may allow for increased share buybacks, the timing of reinvestments in US managed lanes remains uncertain. Additionally, while the construction backlog appears promising, the conservative margin targets set by management could indicate potential challenges ahead. These mixed signals contribute to the Hold rating, as the stock’s future performance may be influenced by both positive developments and existing uncertainties.