Carax Alphavalue |After earning the unhappy reputation of being the protagonist in Spain’s biggest ever bankruptcy case, engineering and renewable energy company Abengoa could be worth taking another look as a summer investment bet – albeit a high risk one.
SPANISH SMALL & MID CAPS REPORTS
Norbolsa | We consider the acquisition just announced by Vidrala in Portugal as attractive: a factory with high margins and with potential synergies given its proximity to Gallo; a purchase made at attractive prices and which will be immeditely EPS accretive.
Miquel y Costas has known how to create a niche for itself amongst the big global producers, taking advantage of the fact it is historically well-positioned in its sector (paper for the tobacco industry), with very few competitors and high entry barriers.
Ezentis ended 2016 with an order book worth €848.4 million and a ratio of 2.8x sales. This figure, combined with the fact the bulk of the order book is recent (79% of the contracts awarded in 2016), guarantee a large part of the group’s future results, as well as reducing their volatility.
OHL will more than quadruple its Ebitda to 1.009 billion euros in 2017, increasing sales by 30% to 5.027 billion from a year earlier, according to estimates prepared by the company for its Investor Day and sent to the Stock Market Regulator (CNMV).
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.
CIE Automotive ended 2016 eliminating any doubts on its capacity to meet the objectives in its 2016/2020 Strategic Plan. In fact, it has brought forward its target of doubling Attributable Net Profit by one year to 2019.
The European Commission has initiated proceedings against Spain for the limits it imposes on direct or indirect participation in Red Eléctrica (REE) and Enagás and for restricting voting rights. Brussels could take Spain to the European Court of Justice if the Spanish government’s response is not convincing and there could be a fine in the end.
Intermoney | For 2017, the forecasts for private consumption indicate that Spain’s advertising market will continue to grow. We reiterate our Buy recommendation for Artresmedia and maintain our Target Price of 13,0 euros/share with a potential upside of 24%.
Alfonso de Gregorio (Gesconsult) | We like Euskaltel because of its strong cash generation and good market positioning. In addition, there are the possibilities for inorganic growth and the good macroeconomic and industry outlook for the group’s business.