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IBERIAN DAILY 24 NOVEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: AEDAS, RENEWABLES SECTOR, SIEMENS GAMESA, TOURISM SECTOR.

MARKETS YESTERDAY AND TODAY

The Ibex resists
Fears about new restrictions in Germany and the possibility of higher rate rises after the re-election of Jerome Powell as Fed chair dragged down European stock markets and technology groups at both sides of the Atlantic. Meanwhile, the Ibex was the best-performing index, ending flat (-0.07%). Thus, in the Euro STOXX, Energy and Construction were the only sectors ending in positive territory vs. the biggest losses of Consumer Goods and Technology. On the macroeconomic level, in the euro zone, November’s Manufacturing and Services PMI climbed above expectations due mainly to Germany and France. In Spain, the government extended the TOB protection for strategic companies against foreign investors. In the US, November’s Manufacturing PMI rose more than expected whereas that of Services dropped more than expected although still remaining in expansion zone. November’s Richmond index slowed down in line with expectations. In Japan, November’s PMI rose unexpectedly.
What we expect for today
The European stock markets would open with a slightly bullish slant, with Technology rallying and the Travel&Leisure sector awaiting the mobility recommendations between countries that the European Commission will make public today. Currently, S&P futures are up +0.1% (the S&P 500 was up +0.46% vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 19.38). Asian markets are mixed (China’s CSI 300 +0.12% and Japan’s Nikkei -1.58%).
Today we will learn in Germany November’s IFO, and in the US the second reading of the 3Q’21 GDP, the Fed minutes, the new home sales data and October’s durable goods orders. In debt auctions: Germany (€ 2 Bn in bonds due 2032).

COMPANY NEWS

AEDAS. Good 1H’21 Results and commercial activity performance. BUY.
The Results show a good business and margin performance, above our expectations although with lower revenues (not being a relevant factor, in our view). Sales: € 236 M (+257.1% vs. +280.7% BS(e)); EBITDA: € 45 M (€ -2 M in 1H'20 vs. € 39 M BS(e)). The pre-sales data is especially positive, in our view, (695 units) on the weakest quarter of the year, including the summer months, which suggests that the supply and demand dynamics remain positive. The company confirmed its FY guidance. We reiterate our BUY recommendation.

ANTI-TOB PROTECTION SPAIN. The Govt. extends protection for strategic companies through December’22.
As expected, the Govt. has extended the timeframe for TOB protection measures taken in March’20 (and extended since then) through December’22 (12 more months as the last extension expired on Dec’21). The measures were put in place to stop investors from being able to take control of Spanish companies in strategic sectors (energy infrastructure, transport, water, healthcare, communications, data treatment or storage, aerospace, defence, electoral or financial) and banned new stakes from these investors equal to or above 10% of share capital in listed companies (€ 500 M limit for non-listed groups) without the Government’s express authorisation.