MasMovil eliminates doubts about 5G entry: Buy (O.P. 25 euro/share)

MasMovil has closed a new agreement with Orange which includes both the mobile network (including 5G and extending it to 2028/2033) and Fibre to Home – FTTH – (including an additional 5.2 M UI) and at the same time has updates its estimates (2019/2020) extending them to 2021.


ACS cash flow profile is now more resistant

Santander Corporate & Investment | We reiterate our recommendation to Buy after revising our model with the aim of including the performance in the first quarter of 2019 and recent tendencies. We have lowered our new objective price (OP) for the close of 2019 from 4.7€/share to 42.5€/share mainly because the valuation at market prices of CIMIC (without recommendation) in our model.

Arcelor Mittal

Demand for steel is not recovering, but ArcelorMittal is doing its homework

Banc Sabadell | The demand for steel in Europe (40% EBITDA) is somewhat weaker than expected (the expected recovery in car making has not happened), which means price rises are not expected. However, ArcelorMittal has showed that it is doing its homework in reducing cash outflows, given a tight financial situation, which could lead to announcements of improved shareholder remuneration in 2020.


Mediaset: TV advertising market will fall -3% vs previous -1.5%

Renta 4 | Mediaset España has issued a communiqué on its results for July and August, again characterised by cost flexibility (savings of almost 20 million euros because of the absence of the world cup) and the reinforcement of incomes not depending on conventional ads.

CIE Automotive acquires the Italian company Somaschini for 5x ebitda

Cie Automotive will acquire 100% of the social capital of Somaschini S.p.A. The enterprise value is 79.6 million euros, equivalent to less than five times EBITDA for this year, and will be adjusted at closure of the deal depending on its indebtedness, as is usual in this type of operation.

Santander: 1.5bn hit to UK operation, without visible impact in the accounts

Bankinter | Santander UK has completed a revision of its  UK operation, with a cut of 1.5 Bn€. This writedown is due to a deterioration in business perspectives (generation of future incomes) as a consequence of the severe regulatory environment and uncertainty about Brexit, which obliges it duplicate certain functions and, therefore, raise costs and reduce the expectations for the generation of profits.


Cellnex: lower capital costs 4.8%-4.9% (from 5.2%-5.6%)

Santander Corporate &Investment | We have adjusted our estimates (including its recent acquisition of Cignal in our forecasts). Nevertheless, the main novelty is the modification of our suppositions on the cost of capital to take into account the current interest rate scenario.