Morgan Stanley | The Q3’22 survey of CIOs (Chief Information Officers) suggests a slowdown in IT budgets’ growth. Expectations for spending in 2022 have been cut by 100bp to 3%. For 2023, growth of 2.8% is expected, so both figures would be below the pre-Covid average of 4.1%. The ratio of those CIOs who expect an increase in budgets vs a cut has fallen to 0.4x (vs 1.1x Q2’22), registering…
Renta 4 | On Monday after the market close, Repsol released figures corresponding to Q3’22, where the price of Brent (100,8 USD/b) rose 37.1% year-on-year and fell 11.5% quarter-on-quarter, and the price of gas (8,2 USD/Mbtu) was up 105% year-on-year and 13.9% quarter-on-quarter. These figures compare with the company’s guidelines for 2022, where it considers levels of 70 USD/b and 3,7 USD/Mtbu, while sensitivity to the price of Brent is…
Morgan Stanley | After a series of acquisitions Grifols’ debt has increased to 10 billion euros (7xND/Ebitda). That said, with 65% of debt at a fixed rate and maturities in 2025, we expect gearing to drop to 4.9x in 2023 and 3.8x in 2024 (thanks to a recovery in profits). However, in the short term, with limited ways to reduce gearing, this is going to put pressure on the stock….
Link Securities | Merlin Properties CEO, Ismael Clemente, highlighted in an interview with the daily Expansión that they are focused on managing and growing the company. He said they will take advantage of the opportunities which present themselves amid the possible unfavourable economic situation. This is what they did in 2014 (aquisition of the portfolio of BBVA branches), in 2015 (buy of Testa) and in 2016 (merger with Metrovacesa). The…
Renta 4 |Vodafone could be waiting to receive offers for its stake in Vantage Tower in which it controls 81%, according to Reuters. Vantage manages 83,000 towers in 10 countries and currently has a market cap of 12.5 billion euros. According to the press, Cellnex and American Tower would be weighing up the idea of presenting an offer for the above-mentioned stake. Valuation: In acquisition transactions of this kind, Cellnex…
Bankinter | The State budgets include estimates for the results of the big state-owned companies. One of them is Aena, for which the NAP forecast is for 380 million euros in 2022 and 650 million in 2023. Bankinter analyst team’s opinion: Bad news. The estimates for 2023 are below our own for NAP of 787 million euros. It’s probably a conservative figure, but once again it shows the company’s vulnerability…
Morgan Stanley | We are expecting a positive surprise in NII (+3.6% QoQ), which will allow for upgrades in consensus estimates for 2023. Meanwhile, in terms of provisions we are expecting stable figures. We see the best momentum in terms of profits for BBVA and Caixabank (both Overweight) and there could be a catch up in Banco Santander, as the political uncertainty lessens. Santander – Good numbers in Spain. The…
Link Securities | Enagás has signed a strategic cooperation agreement with AlbGaz, involving its potential entrance as a stake holder in the operator of Albania’s gas transport system. The two entitities will also study joint projects within the Albanian and European regulatory frameworks, and in line with the Albanian government’s directives, according to Europa Press. The agreement has been signed in Tirana (Albania) by Enagás’ CEO Arturo Gonzalo Aizpiri and…
Intermoney | Aena (Hold, Target Price 140 euros/share) plans soon to put the management of its duty free shops out to tender, the daily Cinco Dias reports. This tender is considered to be the largest of these characteristics in the airports industry, with 85 sale points and a global area of 55.000 m2, including Spain’s main airports. Aena’s current main tenant is Dufry, with whom the airports’ operator has been involved,…
Link Securities | On Monday, Iberia (IAG) chairman Javier Sánchez-Prieto warned about the implementation of asymmetric sustainable policies in Europe, which could be a drag on Spain’s tourism business, the daily Expansion reported. Specifically this could mean the loss of up to 11 million tourists and 450,000 jobs, according to Deloitte. Imposing taxes on flights within the European Union (EU) would be prejudicial for those companies which operate in the…