Goldman sachs bet strong for Ferrovial: "It has been left behind and it is an opportunity for the reopening of the economy", say the experts of the US bank, who reiterate their advice to purchase on value, with a valuation of 29 euros per title.
Goldman recalls that Ferrovial will obtain the 80% of your expected free cash flow (FCF) between 2021 and 2025 of the highways operating in Canada and the United States and their data suggests that "traffic will pick up once the restrictions are lifted."
In his opinion, the company will recover the cash flow lost in 2020 and 2021 in the medium and long term, due to the duration of its concessions, since traffic "will rebound from depressed levels and highways continue to trade well above inflation (while real rates remain negative). "
For Goldman, investors doubt the future of the Canadian Highway 407R, due to the possibility of building a alternative route in Toronto that negatively affects traffic and the lower use expected in the future by the adoption of teleworking. "We think that these factors will not affect the growth profile that this asset had before the pandemic."
These experts consider Ferrovial to be a good option because they anticipate "a compelling sequence of potential catalysts. The first is the reopening and recovery of traffic in Dallas and Toronto, followed by the completion of the sale of the Services division, the possibility of a upward revision of Heathrow's regulatory base of assets (RAB), as well as the possibility of a early completion of new highways in Virginia and Texas".
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