Banc Sabadell | Despite Ferrovial´s excellent performance this year (+26% in absolute terms and +17% vs IBEX) our Objective Price still suggests potential (c.+10%) and the share remains one of our main bets in the sector.
The weakness in Ferrovial’s share price compared with that of its peers is largely down to the erosion in the construction division’s EBITDA margin. This has declined by 65% to 2.6% for Ferrovial Agroman, and it’s not expected to recover until the beginning of 2019.
Ferrovial, which owns 25% of Heathrow, could benefit from the possible extension of the airport’s installations: apart from being able to participate in the construction of a third runway, the increase in the number of passengers would mean higher revenues, profits and dividends for the Spanish services and infrastructure operator.