Raise Estimates and Price Target on Ferrovial SE

Goldman Sachs raised its price target for Ferrovial SE to €65, maintaining a Buy rating based on strong FCF performance in toll roads and construction. Gains in the 407 ETR and US Managed Lanes are expected to offset near-term losses from the New Terminal One project at JFK.

Key Takeaways

• 1.Raised price target to €65 based on higher Free Cash Flow estimates, particularly from the 407 ETR and Construction divisions.
• 2.407 ETR remains the core value driver with an expected 16% EBITDA growth CAGR for 2026-28E due to pricing catch-up and revenue management.
• 3.The New Terminal One (NTO) at JFK is expected to remain loss-making through the end of the decade due to high fixed costs and slow traffic ramp-up.

Table of Contents

• 407 ETR pricing & upgrade cycle continues
• US Managed Lanes are performing well
• NTO
• Construction
• Price Target Risks and Methodology - Ferrovial SE
• Disclosure Appendix
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Company-specific regulatory disclosures
• Distribution of ratings/investment banking relationships
• Regulatory disclosures
• Ratings, coverage universe and related definitions
• Global product; distributing entities
• General disclosures

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