IBERIAN DAILY 18 NOVEMBER (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACERINOX, ELECTRICITY SECTOR, SOLARIA.Valuations on AI continue to raise doubts on stock markets
The week kicked off with drops (as the previous one ended), dragged down by the uncertainty surrounding the Fed’s decision on rates in December and by the growing fear of an AI bubble. The IBEX 35 fell for the third straight day, closing below 16,200. In the STOXX 600, most sectors ended with drops, led by Retail and Chemicals, whereas Utilities and Energy ended as the best relative performers. On the macro side, in the US November’s Empire manufacturing index rose unexpectedly to its highest level since Nov’24 thanks to the new orders component, whereas construction spending rose unexpectedly. From the Fed, C. Waller and P. Jefferson were in favour of cutting rates in December in view of the weak job market. In Brazil, economic activity rose more than expected to 2% YoY.
What we expect for today
In a new session of risk aversion European stock markets would open with drops of -1.0% with cyclical sectors faring worse. Currently, S&P futures are down -0.50% (the S&P 500 ended -0.25% lower vs. the European closing bell). Asian markets are falling (China’s CSI 300 -0.76% and Japan’s Nikkei -3.03%).
Today in the US we will learn August’s factory orders and November’s NAHB residential sector confidence. In US business results, Home Depot will release its earnings.
COMPANY NEWS
SOLARIA. Main messages from the CMD. T.P. Under Revision. UNDERWEIGHT
Following the positive messages conveyed but that will need constant confirmation we place our T.P. Under Revision after yesterday’s rise (+16%; around € 350 M of market cap), which would already reflect some optimism to meet the targets outlined, mainly bearing in mind that its market cap has tripled since May’25. In this regard, the situation is similar to that seen in 2020 when at its CMD the group made public it would end 2025 with 6,200MW installed. If we were to assume that the company will meet the guidance’25 it will end the year -50% below that target and -66% below if our more feasible estimate is met. On another note, we miss accurate details on the DC business, the pillar of the CMD, such as specific agreements or JV taking into account that this “new” business line was announced 15 months ago.
Acerinox is the parent company of a group engaged in the manufacture and sale of flat and long stainless steel products, and stainless steel wires. Co.'s major products include slabs, billets, black coils, plates, hot-rolled coils, hot-rolled sheets, flat bars, hot-rolled re-bars, hot-rolled black bars, engraved sheets, cold-rolled coils, cold-rolled sheets and circles. Co. also provides long stainless steel products, such as wire rods, angles, hot rolled flat bars, hot rolled re-bars, reinforced bars in coils, cold rolled re-bars, hot rolled black bars, cold drawn bars, and smooth turned bars. In addition, Co. offers wires, welding wire bars, and bars for electrodes.
Solaria Energia y Medio Ambiente manufactures both solar and thermal cells and panels, rolls out turnkey projects for large installations, operates solar plants and generates electricity through its owned plants.
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