BofA Views Concerns Related to Ferrovial's Latest US Project as 'Overdone'; Buy Rating Kept

06:35 AM EDT, 09/14/2026 (MT Newswires) -- BofA Global Research reiterated Ferrovial's (FER.MC) buy rating, saying investor concerns regarding the infrastructure group's recent project win in the US look "overdone". "We [ran a deep dive] into the recently awarded I-24 Choice Lanes project in Tennessee. While assessing the economics of the asset presents a challenge, given the limited disclosure and a lack of guidance, under our base case we estimate an equity [internal rate of return] above our estimate of FER's cost of equity, with potential upside from traffic, pricing and funding structure. Visibility on the I-24 is poised to improve with commercial close (Q4'26) and financial close (Q3'27)," according to a Monday note. "Ferrovial is the leader in the US Managed Lanes market with a sound value creation track record: we estimate its five operational projects generate lifetime equity IRRs at 14-28%. However, the market took the I-24 win negatively, given the significant premium Ferrovial offered vs its competitors (ie 70% higher vs 2 highest bid, and 121% higher vs 3 highest, including construction costs and payments to the state)," analysts wrote. Meanwhile, the research firm added that like-for-like momentum for existing assets is solid, with the anticipated 407 ETR toll increase in November considered a key near-term catalyst. BofA lowered its price objective on the stock to 67 euros from 68 euros on foreign exchange movements. Analysts also trimmed their EPS forecasts for full-year 2026 through 2028.