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RBC sees balanced outlook for Ferrovial: growth vs. valuation concerns

EditorEmilio Ghigini
Published 11/12/2024, 03:52 AM
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On Tuesday, RBC Capital resumed coverage of Ferrovial SA (FER:SM) (OTC: FRRVF) stock, a global infrastructure operator, with a Sector Perform rating and a price target set at €42.00. The firm's analysis highlighted Ferrovial's track record as a robust platform for value generation and acknowledged the potential for additional growth.

The firm noted the strong momentum of Ferrovial's North American assets but also pointed out certain uncertainties regarding their valuation. While recognizing the company's strengths, RBC Capital expressed caution, suggesting that clearer investment opportunities might exist within the sector.

In his statement, the analyst from RBC Capital remarked on the company's performance, "Ferrovial has been an impressive vehicle for value creation, and we think there is further upside potential to come." This comment underscores the firm's recognition of Ferrovial's past achievements and future prospects.

However, the analyst also conveyed a degree of hesitation, stating, "Momentum on Ferrovial's North American assets remains strong, however we think there are some uncertainties in the valuation of these assets." This perspective reflects a balanced view, acknowledging both the positive aspects and the areas of concern.

RBC Capital's Sector Perform rating indicates an expectation that Ferrovial's stock will perform in line with the average returns of the sector over the next twelve months. The €42.00 price target suggests the firm's view on the stock's value based on their analysis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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