JPM starts ACS at 'overweight' as data centre fears cloud growth story

** JPMorgan initiates its coverage on Spanish builder ACS ACS.MC with an "overweight" rating saying data centre fears "obscure a compelling growth and valuation story"

** The broker sets its PT at €127 ($142.37)

** Says that after 36% share price drop since May peak it sees "a compelling entry point into a business whose growth prospects remain firmly intact"

** It believes the market underestimates ACS's data centre growth, with its secured backlog already underpinning consensus expectations and a strong pipeline offering upside through 2030

** It adds the stock's valuation does not fully reflect the value of its non-Hochtief businesses, while potential gains from US projects, data centre investments and a possible US listing offer further upside

** Out of 20 analysts that cover ACS, 13 rate the stock "strong buy" or "buy,"​ 5 rate it "hold" and 2​ rate the stock "strong sell" or "sell" - LSEG data

($1 = 0.8921 euros)