Morgan Stanley | Nic Mora (analyst) upgrades ACS to OW, seeing greater growth potential in its data centre construction division. Nic acknowledges the strong share price rally (5x in 4 years), which reflects the impressive data centre construction business (Turner), with global leadership, growth and potential for margin expansion. His new EBITDA estimates are 9–15% above the consensus, driven by both revenue growth and improved margins in data centres. Furthermore, he identifies a new phase of value creation stemming from the data centre co-development joint venture, which he models in depth. Non-data centre businesses reinforce the base case, with attractive features such as managed lanes in the US, the potential for margin improvement in US infrastructure, German infrastructure, Abertis, Defence and Critical Minerals. It raises its target price to €150, implying a 2027 P/E ratio of 23x and a CAGR of EPS >20% in 2025–30, representing an additional upside potential of 25%.
