UBS cuts Ferrovial to 'neutral' on uncertainty over I-24 project

Out of 23 analysts that cover Ferrovial, 13 rate the stock "strong buy" or "buy", eight "hold" and two "strong sell" or "sell" - LSEG data.

UBS downgrades Spanish construction firm Ferrovial FERF.AS to "neutral" from "buy", saying its initial assessment points to "underwhelming" returns from the recently won I-24 contract in Tennessee.

The broker notes higher risks related to the project due to its large capex requirements, high fixed concession fee and big upfront debt.

"Increased competitiveness for ML (Managed Lane) tenders and a potential perceived lack of bid discipline in the industry leaves in our view an overhang on the stock," UBS adds.

It will therefore await more clarity on the I-24 project and the outcome of the company's I-285 tender.