What to expect from ACS after the Supreme Court’s failure in the Abertis case?
Analysts said the company’s shares overreacted on Monday when compensation for the subsidiary was ruled out. Intermoney and Renta 4 are among the firms that see the fall as an investment opportunity, but others such as Alantra are cautious and advise selling.
Yesterday the ACS recovered after falling 10% in the previous session as a result of the deviation The Supreme Court filed a lawsuitstate to compensate for the low traffic volume on the AP-7 highway duringrants from 2006 and 2021.
Analysts admit that this is bad news because it is expected compensation from Abertis (about 1300 on the market), a subsidiary of ACS, which did not materialize, but they also note that they were punished
Yesterday the ACS recovered after falling 10% in the previous session as a result of the deviation The Supreme Court filed a lawsuitstate to compensate for the low traffic volume on the AP-7 highway duringrants from 2006 and 2021.
Analysts admit that this is bad news because it is expected compensation from Abertis (about 1300 market), a subsidiary of ACS, which was not implemented, but they also note that the punishment suffered in the stock market was excessive. “The market reaction (-10%) was excessive because the loss in ACS market capitalization (1,100 million) was much higher than the real effect of 112 million that we estimate for ACS,” explains Juan Tuesta, an analyst at Bankinter, who expects this overreaction tends to be corrected in the short term.
This line also includes GVC Gaesco Valores, which did not take into account any amounts from this litigation in its assessment.
For Renta 4 the postponed fall is opportunity to take positions in the value that this month is marked rhistorical record – 39.89 euros. (price including dividends and other transactions). Compensation was only seen as a possible additional price driver, and they explain that “Abertis has a strong balance sheet and continues to be positioned to continue its expansion over the medium term, without implying a change in its dividend policy.” “, he explains. Angel Perez, analyst at Renta 4, maintains his target price at 40.40 euros, 12% above its price.
Intermoney’s Guillermo Barrio maintains his estimate among the highest at €43, representing a potential close to 19%. He acknowledges that the decision is a “heavy blow to ACS, which may have had a number of expectations associated with this decision that were not met.” He explains that there was an “unofficial” consensus in the market that compensation of around 1,300 million was expected, which, taking into account ACS’s participation in Abertis, meant around 2.5 euros per share for the construction company. On Monday the price fell by almost 4 euros. The company did not take this failure into account in its valuation, so falling prices open a new window of investment opportunity.
on the radar
Investors’ attention is now focused on results expected at the end of February.
In addition, attention is focused on the Capital Market Day in April, where “the company is expected to present extensive information to adequately evaluate Abertis,” comments Rafael Fernandez de Heredia of GVC Gaesco Valores. We will also have to keep a close eye on the numbers contributed by construction in niches such as digital infrastructure.
Among the most pessimistic ACS names are Alantra, Morgan Stanley and Santander, which have set a target price for the construction company below its price. Alantra reduces it from 36.55 to 34.51 euros and advises selling shares.