Oil prices rebound sharply on smaller-than-feared OPEC+ output hike
Investing.com - BofA Securities has upgraded ACS Actividades de Construccion y Servicios SA (BME:ACS) (OTC:ACSAY) from Neutral to Buy, while significantly raising its price target to EUR78.00 from EUR52.50. The upgrade comes as the stock has demonstrated remarkable strength, posting an 81.9% return over the past year according to InvestingPro data.
The upgrade represents an 18% total return potential and comes as BofA anticipates further strong earnings growth for ACS in 2026, with earnings per share expected to increase by 15%. The company’s solid financial health is reflected in its "GREAT" overall score from InvestingPro, supported by strong revenue growth of 25.48% in the last twelve months.
BofA cited ACS’s sound order intake, which grew 15% year-over-year in the first half of 2025, and the company’s substantial exposure to US Construction, which accounts for more than 50% of its net profit.
The firm highlighted ACS’s work on US data centers, which represent 14% of the group’s backlog, and noted potential value creation from equity deployment to data centers via Iridium, along with more opportunities in US managed lanes.
Despite recent stock appreciation, BofA estimates ACS trades at 12.0x 2026 EV/EBIT, representing a modest premium to its subsidiary Hochtief at 11.8x but still at a discount to US engineering and construction peers, which average 19x with a range of 14-31x. The company maintains a strong market position with a 36-year track record of consistent dividend payments, as highlighted in InvestingPro’s analysis, which reveals 13 additional key insights about the company’s performance and outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.