BofA Global Research raises its recommendation on Hochtief from 'neutral' to 'buy' and its price target from 112 to 140 euros, noting that the German construction group's stock trades on a P/E ratio of 12.4 times, compared with 14-20 times for its US peers.

The broker adds that it expects favorable prospects for its American Turner construction business (around 60% of pre-tax profit), a significant turnaround in FCF and a more comfortable balance sheet (positive net cash expected by 2026).

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