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Stainless steel

Companies, European economy, Ibex 7th July 2022

We still prefer carbon steel vs stainless steel; ArcelorMittal (Overweight) and Acerinox (Equalweight)

Morgan Stanley | The steel companies have historically done badly in recessions. Currently, with the risks of recession on the rise, margins at spot price continue to weaken and we have seen an important derating. It is likely that delays in prices support Q2 profits, but we see a significant slowdown from the next quarter. We still prefer carbon steel to stainless steel. ArcelorMittal (OW): we expect the company to generate…

Cellnex

Companies, European economy, Ibex 6th July 2022

Deutsche Telekom’s decision on the sale of its towers could be revealed this week

Renta 4 | According to Bloomberg, the consortium formed by KKR, GIP and Stonepeak would be tabling a more attractive offer for Deutsche Telekom’s towers than that presented by Cellnex and Brookfield. The possibility that Vodafone, via its affiliate Vantage, and even American Tower, have already withdrawn from the process, also appears to be ruled out. The news report says that Deutsche Telekom’s decision could be revealed before the end…

Acciona

Companies, Ibex, Relevant News Item 6th July 2022

Acciona wins contract to build a 15km ring road in Australia with an overall budget of around €700 M

Intermoney | Acciona (Buy, Target Price 210 euros/share) continues to grow in the public works sector in Australia. It has been chosen as one of the contractors to build a 15km ring road in Queensland. The overall budget for the project is around 1 billion Australian dollars (some 700 million euros). Along with a local firm, Acciona has won, provisionally, one of the lots awarded with a investment budget of…

BBVA

Companies, Ibex, Relevant News Item 5th July 2022

BBVA, top pick in Spanish banking sector for the quarter on possible hike in Mexico guidance

Morgan Stanley | A more positive tone or guidance concerning NII should continue providing support for the Spanish banks. We recall that last week we raised our estimates for NII by an average 5% after incorporating 100 bp of rate hikes vs a previous 50 bp. This should offset the impact of an average 15 bp in CET1 due to the rise in bond yields. Asset quality should remain stable. BBVA…

Repsol

Companies, Ibex, World economy 4th July 2022

Germany, Canada negotiate investing €2 B in Repsol’s Saint John LNG plant

Renta 4 | Germany and Canada are negotiating an investment of 2 billion euros in the Saint John LNG regasification plant, owned by Repsol. The aim is to be able to export gas to Europe to reduce dependence on Russia, according to press reports. The Canadian Environment Minister has indicated that Repsol’s plant would be the one which could most quickly make the deployment, as it already has the infrastructure…

Repsol entrada

Companies, European economy, Ibex 4th July 2022

Repsol and Ardian bid for majority stake in PLT Energía

Renta 4 | Repsol would be interested in buying Italian renewables company PLT Energía. Repsol and the French fund Ardian are bidding for a majority stake in the Italian firm valued at 1 billion euros, according to press reports. In the event the possible purchase happens at some point in the future, it would mean Repsol disembarking in the Italian energy market. Swedish fund EQT would also be interested in…

iberdrola guapis

Companies, European economy, Ibex, In Europe 1st July 2022

Iberdrola commits to maintaining its €3.5 B investment in the UK despite new regulatory framework

Link Securities | Iberdrola has committed to maintaining its planned 3 billion pounds (some 3.5 billion euros) investment in the UK. This is despite the new regulatory framework proposed for network operators in the country which limits profits, according to a report in Expansion. The Spanish electricity company explained on Thursday that it plans to continue to drive energy transformation in the UK as part of its transition towards an…

Ferrovial-Toronto

Companies, Ibex, Relevant News Item 1st July 2022

Exposure to the US, sensitivity to inflation and protection against the upticks in IRRs:Overweight Ferrovial (T.P. 34 eur/share)

Morgan Stanley | After it being the principal motive for criticism from investors, the recent recovery in traffic on the 407-ETR (-19% vs 2019 en Q2’22; -34% vs 2019 in Q1’22) is driving Ferrovial’s momentum in the short-term. And it also provides support for a return to dividend payments mid-July 2022. In Heathrow, increased traffic, more inflation-linked in the short-term and lower CAPEX more than offset cost expectations. Meanwhile, in the…

No Picture

Companies, Ibex, Relevant News Item 30th June 2022

Grifols could be negotiating €2 B capital hike; debt rose to 5.4x NFD/Ebitda end-2021

Bankinter | Grifols could be negotiating a 2 billion euros capital hike (c. 18% of its current capitalisation) with various funds. The objective is to cut its debt which is equivalent to 6.9x EBITDA, according to a daily newspaper. Grifols’ share price took a hit this morning on the IBEX 35, falling as much as 13%. Bankinter analyst team’s view: Negative news. If this rumour is correct, the capital increase…

Heathrow Ferrovial

Companies, European economy, Ibex, In Europe 30th June 2022

UK regulator proposes cutting Heathrow landing charges

Bankinter | The UK’s Civil Aviation Authority (CAA) has proposed that the landing fees at Heathrow be cut from 30.19 pounds per passenger to 26.31 pounds in 2026. This would imply a 2.6% annual decline over the next five years. The CAA believes this will allow for a balance between allowing the aiport to invest in infraestructure and maintaining fees at levels which customers can afford. Bankinter analysts team’s opinion:…