UBS Downgrades Ferrovial to Neutral Rating, Reduces PT

Ferrovial is nearing completion of a $9.2B project for Nashville's I-24 Choice Lanes, citing strong regional economic and demographic growth to support long-term traffic demand. The company expects to finalize financial details soon, with dynamic tolling and a revenue-sharing model. Ferrovial holds a 65% stake and targets a double-digit equity IRR. The project is expected to be funded through operations and corporate debt, without requiring a capital increase.

J.P. Morgan downgraded Ferrovial to 'neutral' and cut its price target to €50 from €65, citing concerns over the I24 project's cost and risk. The project's $24.8B concession value is higher than rivals' bids, and Ferrovial shares have fallen 16% since the win. J.P. Morgan also warned of potential downside if Ferrovial wins the I285 East project in Georgia.

Ferrovial (FER) shares fell 1.3% to €45.455 after JPMorgan downgraded the stock to Neutral, cutting its price target to €50 from €65. The downgrade cited concerns about the economics of the I-24 Southeast Choice Lanes concession in Tennessee, where Ferrovial's bid was significantly higher than competitors. The stock hit a 52-week low of €45.39, contrasting with the broader Spanish market's gain.

Ferrovial, a global infrastructure company, reached commercial close with the Tennessee Department of Transportation for the I-24 Southeast Choice Lanes project in Nashville. The Ferrovial-led DriveTN consortium will finance, design, build, operate, and maintain the lanes under a 50-year concession. The project aims to improve mobility and drive economic growth in the region. Ferrovial shares trade under the ticker symbol FER on Nasdaq and the Spanish Stock Exchanges.

Ferrovial (FER) was selected for a $9.2B Tennessee highway project, its largest public-private partnership. The company reported a 21.6% rise in adjusted EBITDA to €746M for H1 2023, with U.S. highways contributing significantly. Net profit fell to €258M from €540M in H1 2022, partly due to prior asset gains. Ferrovial's order book reached €18B, with North America accounting for 47.9%.

Ferrovial stock rose 3.4% to €56.97 after its consortium, DriveTN, won a $9.2B contract to develop I-24 Southeast express lanes in Nashville. The project aligns with Ferrovial's strategic focus on North American managed-lane infrastructure, following strong H1 2026 earnings. The gain was driven by company-specific news, not broader market trends.