The Energy Ministry this week held its macro-auction to award installation licences for up to 3.000 MW of renewables plants in Spain. The auction represents an investment of over 3 billion euros and Forestalia, Gas Natural and Endesa ended up with the majority of the MW.
SPANISH SMALL & MID CAPS
Spanish automotives parts’ manufacturer Gestamp will make its stock market listing on April 7. The preliminary price range is 5,60-6,70 euros, which values the company at 3.540 billion euros at the middle range. The operation will be positive for the Spanish bourse, where there are not a lot of industrial companies.
Fernando Rodríguez |Bankia’s stock market gains after the news that it will takeover BMN exceeded market consesus. But the future of Bankia’s stock price in the short-term will depend on the small print and the ratios of the merger.
Fernando Rodríguez At the end of this month, OHL will present its Strategic Plan 2017-2030 after terminating 2016 with losses of 432,3 million euros, three risk rating downgrades from Moody’s, its exit from the Ibex-35 index and its share price taking a nosedive.
In 2016, Merlin Properties posted a record profit of 582.6 million euros, almost 12 times more than in 2015. Rental income corresponding to just the fourth quarter rose to 121.5 million euros from 74.9 million in the third quarter thanks to the integration of Metrovacesa’s assets from end-October.
Prosegur plans to list up to 40% of its Prosegur Cash affiliate via a share sale exclusively for qualified investors. Prosegur Cash is the group’s main cash flow generator, contributing over 90% of results. It plans to earmark 50-60% of earnings for dividends.
Talgo has set up the company Motion Rail to break into the high-speed and long distance rail market when Spain’s rail transport sector is liberalised and opens up to competition in Europe. This is expected to happen end-2020.
Sopra Steria and Indra Sistemas are small market caps (respectively €2.2bn and €1.7bn) compared to their peers Atos and Capgemini with market caps of €10.0bn and more. Both stocks trade at reasonable 2017 P/Es (respectively 13.4x and 13.6x) and analysts see significant upsides for both stocks. Indra is clearly more of a high risk- high return proposition while Sopra may have to cope with Brexit-induced uncertainties
Cellnex signs up for two new projects in France worth €854 mn, in line with its strategy for boosting its international expansion. It will now become the second biggest independent towers operator in France.
Fernando Rodríguez | The outlook for economic growth in Spain continues to be good and domestic small and midcap stocks should reflect this. Above all, the cyclicals – particularly industrials – and consumer stocks. Barón de Ley, Miquel y Costas, Cie Automotive, CAF and Fluidra are some of the top stock picks.