As of 1 March, Ferrovial returned to Eco10, elEconomista newspaper’s stock index based on 53 analyst portfolios.
According to elEconomista: “Ferrovial is on the rise, and experts highlight its revenue and dividend visibility”
As from 1 March, Ferrovial is back in Eco10, elEconomista newspaper’s stock index. Eco10, a member of the Stoxx family of indices, contains the ten securities rated most highly by participating research firms. According to elEconomista, the new Eco10 has performed well in the first few months of the year. The index has gained 15.5% so far in 2015, compared with 7.9% by the Ibex-35 in the same period.
The newspaper also reports that analysts expect strong earnings performance from Ferrovial. Bankinter’s team of analysts highlight the company’s future revenue visibility: “The services division, which generates 35% of EBITDA, has increased its backlog by 6.2%.”
The paper also underlined Ferrovial’s internationalisation and its strategic assets as further support for the stock. “The company’s 43% stake in the 407 ETR in Canada and 25% stake in Heathrow Airport Holdings in London provide close to 100 million euro in earnings from equity-accounted affiliates. Their value should be boosted by higher tolls in Canada and traffic at Heathrow,” said Bankinter, which describes debt (6x EBITDA) as “bearable”. In technical analysis terms, Ferrovial is on the rise in all markets. As for fundamentals, it continues to trade below the sector average and its ratios are very stable”, says Gonzalo Recarte, a portfolio manager at Saxo Bank.
Full text of the report published in elEconomista
