Ángel Pérez Llamazares (Renta 4) | In Q219 results we saw how Siemens-Gamesa (SGRE) secured a portfolio in maximums of 23.6 M€, offering elevated medium term visibility, and allowing the lower limited of sales guidance to be covered 100%.
Tatiana Coutto via The Conversation | The European Parliament elections are not unlike cricket. Both can last for quite a few days and it can be pretty hard to understand the rules.
Bankinter | Recomendation Buy and Objective Price 17,4€/share. The rise in oil prices and growth opportunities will drive the share price. Repsol will be driven by exogenous (the sharp increase in oil prices benefits it directly – Brent YTD +39%) indigenous factors.
Debt/Ebitda ratios of US companies is estimated to be around 3.3X compared to 2.3X in 2008, although the coverage of interest ratio (Ebitda/interests) reaches 7.4X compared to 7.3X in 2008. Therefore, although the level of debt is indeed high, the capacity to pay is also elevated, which is what really matters.
Manuel Moreno Capa (Gestores) | While the incompetent British political class continue to debate this Brexit impossible to apply (because there is no sense in leaving the EU, a select club which half the world wants to join), the European investment fund market refuses to raise new borders and does the opposite: breaks down existing borders and moves towards a new unification.
Morgan Stanley | With oil up 30% YTD, fairly decent quarterly figures, dividends easily covered, with potential to grow and clearly above a market without upside, and with a process of positive profit revisions, we insist in dedicating half an hour to two ideas which are now being oversold and which have lost all they gained in Q1 and which their high dividend is clearly attractive in the market and which we believe could have returns of around 10% in the relatively short term.
Banc Sabadell | Telefonica (TEF) confirmed last week the sale of its subsidiary in Nicaragua for 390 M€ and so completes the sale of all its activities in Central America for a total of 2.052 M$/reduction of debt by 1.4 M€ (7.4x OIBDA 2018 vs our valuation of 6/7x for all the subsidiaries). The Spanish telco will reduce its net financial debt by 1% with this operation.
Jeroen Blokland (Robeco) | The yield curve for US 10 year/ 3 month Trasury bonds inverted in March. This phenomenon has accurately predicted the last seven recessions. However, analysis shows that is does not cause extreme variations in returns on assets.
At the close of Q12019 CIE signalled that it’s net financial debt has risen to 943.6 M€, which implies a NFD/EBITDA ratio of 1.74X. Positive news for the firm, as it has more funds to increase the loan and extend repayment to 2024.
This figure implies a moderation in the fall in car matriculations in the EU. In March the rate was -3.9%%. In the year so far the fall is -2.6% which brings the total of cars sold to some 5.3 M.