Report
Research Department
EUR 100.00 For Business Accounts Only

IBERIAN DAILY 27 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, ELECTRICITY SECTOR, ROVI.

MARKETS YESTERDAY AND TODAY

Markets drop ahead of Jackson Hole
On the eve of the most important meeting in August, euro zone and US stock markets closed with losses. Thus, in the Euro STOXX all sectors closed in the red except Media and Construction, with Utilities and Public Service Goods falling the most. On the macro side, the ECB’s meeting minutes left the door open to a possible extension to the period of low interest rates, conditioning the first hike to a pronounced rise in inflation. In the US, weekly jobless claims rose, as expected.
What we expect for today
European stock markets would open flat after a new push from Chinese tech stocks. Currently, S&P futures are up +0.2% (the S&P 500 ended with slight gains vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 18.84%). Asian markets are trading with mixed results (China’s CSI +0.60% and Japan’s Nikkei -0.46%).
Today in the US the Jackson Hole meeting will be held and we will learn July’s personal income and outlays. In debt auctions: Italy (€ 6.5 Bn in 180D t-bills).


COMPANY NEWS

ROVI, SELL
The company has announced that Japan has withdrawn a batch of Moderna vaccines after contaminants were found in some vials (which would have been bottled by ROVI).
The company has stated that it would be studying the case, and that in any event this incident would not have affected the vaccines’ safety or efficacy.
Negative news due to the effect it could have on any future agreements with Moderna, although we think it is still too early to assess a specific impact, especially when the company has limited any possible contamination to only a few batches (and in principle there would be no risk for the public).
In our valuation the agreement with Moderna is equivalent to € 10/sh. (the share price has shed more than € -11 since Monday), and thus we understand that after yesterday’s drop the share price would already have factored in a pessimistic scenario regarding the company’s future relationship with Moderna. However, we think the details to be given by ROVI going forward will be key, especially if we bear in mind the stock’s solid recent performance (+37.5% vs. IBEX in 2021), even after the sharp drop yesterday (-13.4% in absolute terms, -12.4% vs. IBEX).
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.

Laboratorios Farmaceuticos Rovi S.A.

Laboratorios Farmaceuticos Rovi is engaged in the sale of its own pharmaceutical products and the distribution of other products for which it holds licenses granted by other laboratories for specific periods, in accordance with the terms and conditions contained in the agreements entered into with said laboratories.

Provider
Sabadell
Sabadell

Analysts
Research Department

Other Reports on these Companies
Other Reports from Sabadell

ResearchPool Subscriptions

Get the most out of your insights

Get in touch