ACS upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Nicolas Mora upgraded ACS (ACSAY) to Overweight from Equal Weight with a price target of EUR 150, up from EUR 88.56. The company has been on a 4-year transformation journey from a complex, largely-ignored contractor into a major Data Center “Pick & Shovel” beneficiary, the analyst tells investors in a research note. Morgan Stanley adds that ACS may have more fuel in the tank, with about 9%-15% EBITDA upside, large data-center co-development value creation, and optionality over medium-long term thematics.