On Monday, Jefferies made a bullish move on Hochtief AG (XETRA:HOT), a global construction company, by upgrading the stock from Hold to Buy and increasing the price target to €124 from €109. The upgrade reflects the firm's positive outlook on Hochtief's prospects in the growing global data center market.
Hochtief, recognized as the leading builder of data centers worldwide, is poised to benefit from the rising demand for global data center capacity. Jefferies anticipates that the company will see accelerated profit growth as it gains from its involvement in high-tech infrastructure projects. These projects are noted for their attractive combination of higher margins and lower risks.
The firm's increased price target and upgraded rating are based on the expectation that Hochtief will continue to thrive due to increasing barriers to entry in the sector, which favor established companies. Jefferies has also raised its estimates for Hochtief's earnings by 3-11% in light of these developments.
The analyst from Jefferies highlighted Hochtief's strong position in the market, stating, "Hochtief is one of the best plays in our coverage on growing demand for global data center capacity." The analyst further elaborated on the potential for profit growth due to the company's greater exposure to high-tech infrastructure projects.
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