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IBERIAN DAILY 05 NOVEMBER + 3Q’24 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: FLUIDRA, OHLA.

At the end of today’s report, and during the entire results season, we will include a presentation with positive and negative results highlights and previews for the 3Q’24 results to be released over the coming days in Spain.

Calm ahead of the elections
It was a calm session with moderate corrections in Europe ahead of the US elections (with a tight race) and the Fed meeting to be held next Thursday. In the STOXX 600, Banks and Energy saw the biggest gains vs. Technology and Real Estate that were the worst performers. On the macro side, in the euro zone, November’s Sentix confidence index rose in line with expectations thanks mainly to Germany. October’s final manufacturing PMI was raised one tenth whereas in Spain it climbed more than expected to 54.5. The Eurogroup urged to definitely complete the banking union. In the US, September’s durable goods orders were raised. In China, October’s Caixin services PMI recovered more than expected to 52.0. In US business results, Marriot International came in below expectations and Fox and Dominion beat expectations.
What we expect for today
Stock markets would open quite flat, with a slight bearish slant in view of the uncertainty generated by the US election. Currently, S&P futures are down -0.28% (the S&P 500 ended +0.15% higher vs. the European closing bell). Asian markets are climbing (China’s CSI 300 +2.03%, Japan’s Nikkei +1.43%).
Today in Spain we will learn October’s number of unemployed and in the US October’s non-manufacturing ISM. In US business results, DuPont, Gartner, Yum! and Microchip Technology, among others, will release their earnings.



COMPANY NEWS
FLUIDRA. We cut our recommendation to UNDERWEIGHT following the recent good share price performance.
The stock has seen a good performance since the end of July’24 (+25%) when we upgraded our recommendation to OVERWEIGHT, no longer yielding an appealing upside to justify this recommendation at current levels even after raising our T.P. after the results released last week. We assume a +10% CAGR’23-26 for EBITDA that is reasonable at the moment, in our view, not expecting a revision in the short-term. Thus, we cut our recommendation to UNDERWEIGHT with a € 27.42/sh. T.P. (+7% upside).