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Investing.com - BNP Paribas (OTC:BNPQY) Exane upgraded Ferrovial SA (BME:FER) (OTC:FRRVY) stock rating from Underperform to Neutral on Wednesday, while raising its price target to EUR42.00 from EUR30.00.
The upgrade follows strong first-quarter results from Ferrovial’s 407 ETR toll road in Canada, which prompted the research firm to increase its EBITDA forecasts for this asset by more than 55% in Canadian dollar terms.
BNP Paribas Exane cited a much lower-than-expected congestion payment, known as Schedule 22, as a key factor in the improved outlook for the 407 ETR toll road.
The research firm’s value-for-money analysis suggests significant room for Ferrovial to raise tolls on the 407 ETR, supporting the more optimistic forecast for the company’s Canadian operations.
For Ferrovial’s mature U.S. toll roads, BNP Paribas Exane maintained short-term estimates but increased long-term projections, now linking revenue growth to local nominal GDP in markets like Dallas-Fort Worth rather than overall U.S. GDP, noting these local economies are expected to grow faster.
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