Ferrovial initiated with a Buy at Deutsche Bank

Deutsche Bank initiated coverage of Ferrovial (FER) with a Buy rating and EUR 48 price target implying 20% upside. Ferrovial’ toll roads benefit from strong pricing power, which is structurally driven by population growth adding to congestion, growth in disposable incomes, limited price elasticity of demand, and a high degree of pricing freedom, the analyst tells investors in a research note. The firm believes this is not priced into the shares adequately.