Bank of America has selected seven European infrastructure firms as its favored choices in the sector, arguing these businesses are positioned to capture upside from long-dated capital programs, inflation-linked cash flows and the ongoing rebound in transport and telecom activity.
The roster of Buy-rated names covers a broad slice of infrastructure exposure - from toll concessions and airports to power transmission, cell towers, data centers and large-scale construction. BofA highlights different value drivers for each company while also citing recent operating and financial updates where management has provided results or guidance.
Ferrovial
BofA describes Ferrovial as a high-quality compounder over the long term, underpinned by long-duration toll concessions in the US and Canada and notable pricing power. The bank points to outsized toll increases at the 407 ETR in 2026 as a key support for upgraded EBITDA forecasts. BofA also notes potential additional upside from managed-lane wins in the US - wins that, according to the bank, are not yet reflected in Ferrovial's current valuation.
The company recently reported a 38% rise in first-quarter adjusted EBITDA to c254 million, with revenue up 31% to c2.05 billion, and it reconfirmed its guidance for 2024.
Fraport
BofA highlights a free cash flow inflection for Fraport after a period of heavy capital expenditure. The bank notes secured tariff growth through 2028 and a revised dividend policy targeting a 60-80% payout ratio. Deleveraging, the start-up of Frankfurt's Terminal 3 and robust traffic in Greek airports are named supporting factors. BofA's free cash flow projections are, however, more conservative than management's internal targets.
Aena
Aena is framed by BofA as a structurally attractive platform benefitting from Spain's strong tourism environment, unlimited-duration concessions and low leverage. The bank sees potential upside to traffic guidance and believes commercial revenue growth is undervalued. Near-term catalysts flagged by BofA include second-quarter results, a revised regulatory framework and an updated business plan.
National Grid
BofA points to National Grid's visible a370 billion capex pipeline across the UK and US and improved regulatory clarity under RIIO-3 as reasons for inclusion. The bank emphasizes inflation-linked returns on UK assets and guidance implying 8-10% EPS growth to 2031, with BofA sitting near the upper end of that range. National Grid's balance sheet is described as solid, reducing the need for near-term equity issuance and reinforcing the Buy stance.
Elia
For Elia, BofA sees a favorable risk-reward profile driven by widening value-creation spreads in Belgium and Germany. The bank highlights a move to cost-plus regulation in Germany as potentially under-appreciated by the market, which could lift incentive-related returns and reduce the company's cost of capital. BofA quantifies the implied total shareholder return at roughly 15%.
Cellnex
BofA regards Cellnex as Europe's leading tower operator and notes a cleaner asset portfolio alongside an investment-grade quality balance sheet. The bank views a delayed, standalone 5G rollout as an under-exploited, medium-term growth opportunity for Cellnex, while also warning that operator consolidation in Europe could pose nearer-term demand risk.
Cellnex itself reported a 7% increase in first-quarter revenue to c946 million and a 7% rise in adjusted EBITDA to c778 million, and it confirmed its full-year outlook.
ACS
BofA ranks ACS as a top pick based on the group's leadership in US non-residential and data-center construction through Turner, together with strong backlog growth and the potential of a US listing that could help narrow ACS's valuation gap versus American peers. The bank highlights that data-center projects now make up a growing share of ACS's backlog, supporting margin expansion.
ACS posted a 7.2% increase in first-quarter net profit to c177 million on revenue of c8.7 billion and reported that its project backlog rose to a record c78 billion.
The seven companies span sectors that are closely sensitive to capital expenditure cycles, regulatory frameworks and traffic or usage trends. BofA's Buy recommendations reflect the bank's view that these exposures - whether through inflation-linked asset returns, secured tariff paths or expanding project backlogs - create differentiated upside potential within the infrastructure complex.
Short summary
BofA identifies seven Buy-rated European infrastructure stocks - Ferrovial, Fraport, Aena, National Grid, Elia, Cellnex and ACS - citing long-duration concessions, tariff clarity, capex pipelines, and improving traffic and telecom trends as core drivers. Several companies reported stronger first-quarter metrics and reconfirmed guidance or highlighted near-term catalysts.