Citi upgrades Ferrovial, says market overlooks growth

** Citi upgrades construction firm and infrastructure operator Ferrovial FER.MC to "buy" from "neutral" as it believes the market is underestimating its growth

** "The market is discounting both the group's growth trajectory, underpinned by its high quality concession assets ... as well as the recent US P3 project wins," Citi says

** The brokerage sees an attractive entry point as shares have underperformed the STOXX Europe 600 construction and materials .SXOP benchmark by 5%

** "Our fundamental view is largely unchanged, with the re-rating primarily driving the upgrade," the brokerage says

** Citi estimates compound annual EPS growth rate of 13% over 2027 to 2030, compared to 5% average for peers, driven mainly by its strong pricing power