Report
Research Department
EUR 100.00 For Business Accounts Only

IBERIAN DAILY 25 MAY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, FERROVIAL, SANTANDER, TALGO, TÉCNICAS REUNIDAS.

MARKETS YESTERDAY AND TODAY

Markets kicked off the week on a calm note
It was a flat session with low volume where some European markets were closed for holiday, with growth outperforming value at both sides of the Atlantic. Thus, the best-performing sectors in the Euro STOXX were Technology and Travel&Leisure vs. Utilities and Insurance that were the worst relative performers. On the macroeconomic level, in the US, April’s Chicago activity index slowed down unexpectedly. In the UK, the Govt. was against the global minimum corporate tax rate proposed by Biden. Separately, Haldane, from the BoE, revealed to the House of Commons Committee that taper tantrum can be avoided if a change of trend is announced clearly and sufficiently in advance.
What we expect for today
Currently, S&P futures are up +0.25% (the S&P 500 ended practically unchanged vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 18.40). Asian markets are rising (China’s CSI +2.5% and Japan’s Nikkei +0.6%).
Today in the Euro zone, the European Council will hold its second consecutive meeting. Also we will learn in Germany May’s IFO and the final 1Q’21 GDP, and in the US the new home sales data and the Richmond Fed Manufacturing Index. In debt auctions: Germany (€~4 Bn in 12M T-bills), France (€ 6.5 Bn in 3M, 6M & 12M T-bills) and the Netherlands (€ 2 Bn in bonds due 2047).

COMPANY NEWS

TALGO. Awarded Renfe contract for 40 power heads for AVE trains. BUY
According to the press, TLG would have been awarded a € 281 M contract from Renfe for the supply and maintenance of 40 power heads (26 +14 as an option) for high-speed trains. The news story does not clearly state whether the contract’s amount refers to the 26 power heads in firm or if the option is included. The company has not announced the awarding yet. Positive news of limited impact, as these € 281 M represent ~9% of its backlog as of 1Q’21.
Underlyings
Actividades de Construccion y Servicios SA

ACS Actividades de Construccion y Servicios is a holding company. Through its subsidiaries, Co.'s activities are divided into the following areas: Construction, engaged in the construction of civil works, and residential and non-residential building construction; industrial services, engaged in the development of applied engineering services, installations and the maintenance of industrial infrastructures in the energy, communications and control systems sectors; services, groups together environmental services, the outsourcing of building maintenance services, logistics and transport services; and concessions, mainly engaged in transport infrastructure concessions.

Banco Santander S.A.

Banco Santander is a holding company, providing a range of financial products. Co.'s products and services include: retail banking business that covers all customer banking businesses; wholesale banking business; as well as asset management and insurance business. Co.'s principal operations are in Spain, the U.K., Portugal, Germany, Italy and Latin America. As of Dec 31 2014, Co.'s total assets amounted to Euro1,266,296,000,000 and total customer deposits amounted to Euro647,627,000,000.

Ferrovial S.A.

Ferrovial is a transportation company based in Spain. Co. is engaged in operations in the transportation sector. Co. specializes in the design, construction, management, administration and maintenance of transport infrastructures. Co.'s services range also includes the maintenance of parking lots, and land-, sea- and air-based transport networks. Co. is also engaged in the promotion and operation of short-stay parking lots, parking regulation and management services and promotion and sale of residents' parking.

Talgo SA

Talgo is engaged in designing, manufacturing, repairing and maintaining the railway rolling stock, as well as the manufacturing, assembling, repairing and maintaining the engines, machinery and parts of the railway systems. Co. has an industrial presence in seven countries: Spain, Germany, Kazakhstan, Uzbekistan, Russia, Saudi Arabia and U.S.A. Co. has an active fleet in Europe, Asia and North America that comprises of 94 high-speed trains and more than 1,400 Talgo tilting passenger cars. Also, Co. purchases, redesigns, constructs, leases and sells all types of real estate.

Tecnicas Reunidas SA

Tecnicas Reunidas is a general contractor company based in Spain. Co. engages in the engineering, design, and construction of industrial facilities for refining and petrochemical, oil and gas, power, and infrastructure and industries sectors worldwide. Co. constructs nuclear plants, conventional thermal plants, and renewable energy and cogeneration facilities for power sector; refineries and facilities for petrochemicals; water treatment, desalination, waste management, air, land, and marine transport facilities; and liquefaction, and storage facilities, as well as oil and gas fields and pipelines. Co. also provides engineering, management and operating services for industrial plants.

Provider
Sabadell
Sabadell

Analysts
Research Department

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