Overall solid results support our valuation of >2 M€ of Heathrow in Ferrovial’s capital

Heathrow FerrovialFerrovial eyes participation in new Warsaw airport

Morgan Stanley | Heathrow (C.8% of the value of Ferrovial (FER)) beat expectations in terms of revenues and costs in Q1’22. In light of an acceleration in the recovery during March/Easter, and a good outlook for airline capacity this summer, management has upgraded its previously conservative guidance for FY’22 by 16% (45.5 million people → 52.8m). It maintains its traditional cautious view with regard to the outlook for Autumn/Winter. The establishment of the price under the seventh regulatory framework (H7) has been delayed until end-2022. In short, solid overall results which supports our valuation of >€2mn of Heathrow in Ferrovial’s capital.

Ferrovial: Overweight, Target Price 34 euros/share