IAG rebounds supported by Ryanair’s forecast improvement
Renta 4 | Reservations for the January / April period are + 1% higher than those of a year ago. This means positive news for the sector and mainly for European companies
Companies
European equities are cheap compared to US ones
Compared to American companies, European companies have a higher average dividend yield and lower valuations, which are attractive for those investors who prefer to be more defensive in the last stages of the cycle.
Telefónica To Reduce Its Reliance On Huawei
Telefónica’s decision to reduce its reliance on Huawei is in line with the company’s strategy to have several different providers for the equipment for its 5G networks, which is expected to be widely deployed by 2022.
Adolfo Dominguez reaches its “point of inflection”
Ana Isabel González García, CIIA (IEAF) | Adolfo Domínguez S.A.is a small designer fashion textile group, based in Ourense (Spain), specialising (c. 40 years) in the design and sale (both retail and wholesale) of fashion items. With international presence (35% o/revenues), it is managed by the founding family (31% of the capital), which prevails in the Board. After the renewal of the business its effectiveness remains to be tested.
BofA: Consensus underestimating Merlin
Spanish real estate still has growth to deliver. Regardless of global economic slowdown, Brexit or trade tensions, we think the country’s competitive labour market should support one of the highest economic growth rates in Europe. Spanish GDP should grow at 1.7% pa over the next three years vs 1.1% in the Euro area, according to BofA economists.
Sabadell Target Price Down for assuming higher cost of equity (11% vs. 10%)
Morgan Stanley’s Equity Analyst Alvaro Serrano had raised his recommendation of Spanish Banco Sabadell (SAB) to Overweight (OW) in May with the expectation that NPA sales, improvement in Britain’s TSB and a capital near 12% CET1 would improve the visibility of benefits from 2020.
Colonial: Primed for further NAV and share growth – reinstate at Buy
BofA | Offices across Europe are enjoying a resurgence, owing to: i) rising property prices as prosperity and hence urbanisation increase in cities, ii) 2.6x faster growth in office-related jobs vs total employment across Europe as the economy becomes more service-oriented (70% of GDP); iii) office vacancy in the central business districts of Madrid, Barcelona and Paris standing 40% below the long-term average, resulting in a tighter supply/demand balance and driving up rents.
-12.2% cut in Repsol EPS estimates in 2019 and -7.63% in 2020
Alphavalue | We have lowered the EPS estimates for Repsol (2019 by – 12.2% and 2020 by – 7.63%) after incorporating the results of the last quarter and lower expectations of gas prices in the US.
Santander Brasil takes full stake of Banco Olé for € 355 M
Santander (SAN) Brazil on Friday closed the agreement to buy the remaining 40% of Banco Olé Consignado for 355 million euros.
Glovo becomes Spain’s second unicorn
Ana Fuentes | The home delivery start-up has become the second unicorn in Spain after obtaining 150 million in an investment round. This brings the four-year-old company’s total funding up to €460m. Only ride-hailing giant Cabify had reached that status before.