Price target of Spanish firms up by +47.3%

BME recursoTC

The weighted average target price is €21.9 (+47.3% more so far this year). The market’s average weighted price is €20.7 (it increases by 32.4% in 2014). Therefore, the average weighted discount between the price and the price target is 5.9%.

The ratio of the average weighted Price/Profit is 17.55 times profits (it drops by 4.7% vs 2013). The inverse of this ratio provides a profit yield of 5.7% (which represents +4.95% increase vs 2013).

The average recommendation is 2.66 points, i.e. more prone to sell than the previous month but more prone to buy than in 2013. Between 1 and 2 is a “clear purchase”, whereas between 3.5 and 5 is “clear sale.”

Currently, there are 17 companies between 1 and 2 points, while there were 9 at the end of 2013. These companies are: IAG, Dia, Almirall, Viscofan, Zeltia, Deoleo, Acerinox, Técnicas Reunidas, Ferrovial, Sacyr, Telefónica, Gas Natural, Enagas, Solaria, Banco Bilbao Vizcaya, Mapfre y Grupo Catalana Occidente.

On the other hand, there are 12 companies between 3.5 and 5 points, whereas at the end of 2013 there were 26. They are: Prisa, Faes, Zardoya, Abengoa, Vidrala, Elecnor, Cementos Portland, Uralita, Abertis, Acciona, Inmobiliaria Colonial y FCC.

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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