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CAF’s bid, only one in final phase of Metro de Madrid’s €412m contract to renew Line 1

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Posted By: The Corner 29th May 2024

Renta 4 | According to press reports, CAF is the only company to have reached the final phase of the contract for the supply of 40 trains for the renovation of line 1 of Metro de Madrid for a total of around €412 million. The contract includes technical assistance for a period of 10 years.

Valuation: Positive news given the amount of the contract which represents around 3.0% of CAF’s total order book and 3.4% of the railway order book. This is the second contract to be won by CAF with the Madrid metro in the last month.

We reiterate our OVERWEIGHT recommendation with a P.O. of €54.5/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.