equity reports

Tecnicas Reunidas

Ibex 35: Tecnicas Reunidas

Year 2017 will bring a change in trend for Técnicas Reunidas, after two years of sharp declines in investment in the petrochemical sector (-43% in 2015 and -27% in 2016e) as a result of the drop in oil prices. According to ACF’s analysts this hypothesis is supported by forecasts for there being an equilibrium between supply and demand for oil by mid-2017, which should reactivate investment in the sector.




Gamesa

Gamesa’s timely merger

Eight months ago Carax-Alphavalue held the view that Gamesa was fully priced ahead of it falling into the Siemens bag. This opinion proved correct only for the following two months. Another six months on and the Spanish wind-turbine manufacturer is looking decidedly expensive at €21.5, even though they have upgraded their target price on the back of a strong 2016 delivery.



Axiare performance

Spanish Small & Midcaps: Axiare

José Benito de Vega | Axiare has outperformed the other listed Socimis, as well as the IBEX-35 since it made its market debut in July 2014. The rise in the company’s NAV per share has reflected this upbeat trend, increasing over 30% in three years.



Deutsche-Bank

Deutsche Bank: Wait (sell, 16% Downside)

The company is a great business that can raise €8bn to essentially hand over the proceeds to the US courts without destroying its market cap (c.-10% on the news). “Hats off then to Mr Cryan, the CEO of Deutsche Bank, for keeping the benefits of the doubt for more than a year into the job”, says Carax- Alphavalue’s analysts.