Wall Street closes at a record for the first time since end of January
Investing.com - Jefferies upgraded ACS Actividades de Construccion y Servicios SA (BME:ACS) (OTC:ACSAY) from Hold to Buy, more than doubling its price target to EUR116.00 from EUR53.10. The upgrade comes as ACSAY has delivered impressive returns, with shares up 130.54% over the past year and 53.13% in the last six months.
The upgrade reflects increased visibility on upside potential from ACS’s investments, particularly its data center pipeline and growing opportunities in US Express Lane development. According to InvestingPro data, ACS operates with a moderate level of debt and maintains a "GREAT" overall financial health score, potentially supporting its ambitious investment strategy.
Jefferies analyst Graham Hunt noted a shift in the firm’s perspective, having previously favored Hochtief over ACS due to preferring Hochtief’s cash-generative "pick and shovel" approach versus ACS’s more capital-intensive greenfield projects.
"However, with multiple asset pipelines now secured, we see increased visibility on upside from investment," Hunt stated in his analysis of the Spanish construction and services company.
The analyst further indicated that ACS shares appear undervalued based on a valuation of 12 times 2026 EBIT and approximately EUR4 billion implied stub value.
In other recent news, Deutsche Bank has initiated coverage on ACS Actividades de Construcción y Servicios SA with a Hold rating. The bank has set a price target of EUR 86.70 for the company. This development comes as ACS is recognized as a leader in the construction of data centers. Management at ACS anticipates a significant increase in AI data center capacity, projecting it to reach 15 times 2024 levels by 2035. This projection suggests a compound annual growth rate of over 20% in the medium term. The Hold rating by Deutsche Bank reflects a neutral stance on the stock amidst these growth expectations. These recent developments provide investors with insights into the company’s strategic positioning in the growing data center sector.
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