Top 7 European Infrastructure Stocks to Watch, According to BofA
Bank of America has identified seven European infrastructure stocks as among its preferred picks in the sector, highlighting companies positioned to benefit from multi-year capital spending programs, inflation-linked revenue streams, and post-pandemic traffic recovery in transport and telecom infrastructure.
The seven picks are all Buy-rated, and range from cell tower operators to data center builders.
Ferrovial
BofA views Ferrovial as a top-quality long-term compounder, anchored by long-duration US and Canadian toll concessions and strong pricing power. The 407 ETR’s outsized 2026 toll hikes support upgraded EBITDA growth forecasts. The bank sees further upside from US managed-lane wins, none of which is yet priced into its valuation.
In a recent update, Ferrovial reported a 38% increase in first-quarter adjusted EBITDA to €254 million, with revenue rising 31% to €2.05 billion, and confirmed its guidance for 2024.
Fraport
BofA highlights Fraport’s free cash flow inflection after years of heavy capex, secured tariff growth through 2028, and a new 60-80% dividend payout target. Deleveraging, Frankfurt’s new Terminal 3, and strong Greek airport traffic support the thesis. BofA’s FCF estimates remain more conservative than management’s own targets.
Aena
BofA frames Aena as a structurally attractive platform benefiting from Spain’s tourism boom, unlimited-duration concessions and low leverage. It sees upside to traffic guidance and undervalued commercial revenue growth, with Q2 results, a new regulatory framework, and a business plan update flagged as near-term catalysts.
BofA likes National Grid’s visible £70bn UK/US capex pipeline, improved regulatory clarity under RIIO-3, and inflation-linked UK asset returns. Guidance for 8-10% EPS growth to 2031, with BofA near the top end, plus a solid balance sheet requiring no near-term equity issuance, underpin the Buy call.
Elia
BofA sees Elia’s risk-reward skewed positively, driven by rising value-creation spreads in Belgium and Germany. A shift to cost-plus regulation in Germany is viewed as under-appreciated, potentially boosting incentive-driven returns and lowering the cost of capital, supporting roughly 15% implied total shareholder return.
Cellnex
BofA regards Cellnex as Europe’s leading tower operator, now with a cleaner portfolio and investment-grade balance sheet. The bank sees delayed standalone 5G rollout as a mostly untapped medium-term growth catalyst, though operator consolidation across Europe poses a near-term risk to demand.
Cellnex announced a 7% increase in both first-quarter revenue and adjusted EBITDA, reaching €946 million and €778 million respectively, while also confirming its full-year outlook.
ACS
BofA rates ACS a top pick on its leadership in US non-residential and data-center construction via Turner, strong backlog growth, and a possible US listing that could narrow its valuation discount to American peers. Data centers now represent a rising share of backlog, supporting margin expansion.
ACS posted a 7.2% rise in first-quarter net profit to €177 million on revenue of €8.7 billion, and reported that its project backlog grew to a record €78 billion.
