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ACS: Underweight pending reinvestment of excess capital

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Posted By: The Corner 10th June 2019

Morgan Stanley | ACS (ACS) continues to reduce its risk profile following the purchase of Abertis and its exposure to assets. This is already discounted in the price. in addition it remains without control over the cash flow of its most important assets (Abertis; ACS/Hochtief/Cimic).

And it has high volatility in US construction margins and high dependence on internal renewable services and Mexico.

We are waiting to see how it will reinvest its excess capital.

ACS, Underweight, Objective Price 36.5 euros/share

 

 

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.