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

CAF factory

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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