IBERIAN DAILY 30 MARCH (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACS, CELLNEX, COLONIAL.MARKETS YESTERDAY AND TODAY
Hedge fund default in the US has no serious consequences for the time being
The European stock markets posted moderate gains throughout the entire session despite a bearish US opening following the block sale by a hedge fund that failed to meet its commitments of its leveraged positions. Although some banks have recognised significant losses due to the liquidation of positions, the market does not appear to be considering a systemic risk in the financial sector. Within the Euro STOXX, Food posted the biggest gains (with AB Inbev leading), whereas the hardest-hit sectors were Travel & Leisure (due to Flutter) and Banks (dragged down by the US), and to a lesser extent, Energy (due to volatility on crude oil prices after the reopening of the Suez Canal). On the macro side, early this morning in Japan, February’s retail sales came in above expectations.
What we expect for today
The European stock markets would open with slight gains, fuelled by expectations of greater fiscal stimulus measures and accelerating US vaccinations. Currently, S&P futures are flat (the S&P 500 ended +0.25% higher vs. its price at the closing bell in Europe). Volatility in the US rose slightly from very low levels (VIX 20.74). Asian markets are trading with mixed results (CSI 300 +0.74% and Japan flat).
Today we will learn in the Euro zone March’s final consumer confidence data, in Germany March’s inflation, in Spain March’s inflation data and February’s retail sales and in the US March’s consumer confidence. In debt auctions: Italy will issue 5Y and 10Y bonds (€ 7 Bn) and 5Y floating rate notes (€ 1.5 Bn).
COMPANY NEWS
CELLNEX. Terms of the rights issue. BUY.
CLNX has approved the terms of its € 7 Bn rights issue, setting a price of € 36.33/sh., meaning a -21.8% discount to yesterday’s closing price, which is better than the -30% discount assumed in our valuation, which we will raise shortly. This means a -17% discount to TERP (€ 43.75/sh.) and a theoretical value per right of € 2.73/sh. The company will issue 192,619 M shares (around +40%) in a proportion of 19 new shares x 48 old shares. We recall that the rights issue is underwritten and there are subscription commitments on 27% of it. We reiterate BUY (T.P. € 59.70/sh.; +36% upside).
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.
Cellnex Telecom SA is a Spain-based company engaged in the wireless telecommunications (telecom) business. Its activities are divided into three segments: Broadcasting infrastructure, Telecom site rental, as well as Network services and other. The Broadcasting infrastructure division comprises distribution and transmission of television (TV) and frequency modulation (FM) radio signals, operation and maintenance (O&M) of radio broadcasting network, as well as over-the-top (OTT) radio services, among others. The Telecom site rental division provides access to wireless infrastructure, primarily through infrastructure hosting and telecom equipment co-location, mainly for mobile network operators and other wireless and broadband telecom network operators. The Network services and other division offers connectivity services for a variety of telecom operators and radio communication, among others. The Company also develops 5th generation mobile networks (5G) through Alticom BV.
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