06:11 AM EDT, 10/07/2026 (MT Newswires) -- BofA Global Research highlighted improved visibility on toll pricing flexibility for Ferrovial's (FER.MC) Tennessee I-24 express lane project in Nashville, US, while flagging that key equity funding timelines remain unclear until July 2027. The research firm said Tuesday it views the disclosed pricing framework for the I-24 project as "supportive," due to "no absolute toll ceiling" and annual soft cap indexation. Analysts added that Ferrovial maintains "meaningful pricing flexibility" on the back of up to 8x heavy-vehicle toll multipliers, even with the Tennessee Department of Transportation's increasing above-cap revenue share. "Ferrovial hosted a conference call to discuss the I-24 project, providing useful additional detail, although two key questions remain unanswered: the required equity contribution and the timing of 'concession value' payments. Key takeaways: 1) FER reiterated double-digit equity IRR target, 2) a $9.2bn construction budget, with works scheduled for 2029-34, 3) construction inflation risk mitigated through contractual protections and cost contingencies, and 4) potential corridor extensions excluded from the bid assumptions, offering possible longer-term upside," analysts wrote. The research firm also noted management confirmation that funding for future managed lanes growth will not require a capital raise, as the company intends to cover investments using project dividends, supported to a secondary degree by corporate debt. Accordingly, BofA maintained the stock's buy rating, with a price objective of 67 euros, citing Ferrovial's "strong pricing power and resilient demand."

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