Ferrovial Combines Protection Against Inflation With Exposure To Recovery In The Cycle; Buy. T.P. €28,5/share (-5%)

Ferrovial-TorontoFerrovial combines protection against inflation and exposure to recovery

Bankinter | Exposure to North America and protection against inflation. Ferrovial offers a good combination of protection against inflation and exposure to the recovery in the cycle, via traffic. Of its total cashflow, 80% comes from North America (US and Canada), where the impact of the war in Ukraine will be less. And salaries have capacity to grow. Whatsmore, Ferrovial has a solid financial structure, with net cash in the parent company as well as investment capacity. So it could benefit from Biden’s infrastructures plan. We reiterate our Buy stance, with a Target Price of 28,5 euros/share, revised slightly downwards (-5%) due to the greater risk premium in some of its assets in Europe.