IBERIAN DAILY 24 FEBRUARY (ANÃLISIS BANCO SABADELL)
NEWS SUMMARY: ALMIRALL, CAIXABANK, MELIà HOTELS, SANTANDER, RED ELÉCTRICA.MARKETS YESTERDAY AND TODAY
Profit taking in stock markets
It was the second session of sales in European indices with a disappointing earnings calendar. In the Euro STOXX, only defensive sectors such as Utilities and Media avoided losses, while once more cyclical industries such as Automobiles and Basic Resources saw the biggest drops. On the macroeconomic level, in the euro zone, February’s manufacturing PMI rose significantly more than expected and that of services climbed unexpectedly, with the positive performance of Germany standing out. January’s final inflation confirmed the preliminary data at 1.4% for general YoY and 1.1% for core. In this regard, the ECB chief economist, P. Lane, suggested an improvement in wages and the gradual recovery of inflation. In the US, January’s existing home sales dropped although less than expected. From the Fed, L. Brainard stated that the monetary policy will continue to be accommodative until the inflation targets are met and claimed non-monetary tools to expand the cycle. In US Results Pinnacle West and Deere came in far above expectations.
What we expect for today
With the drops of -2.5% in Brent crude, stock markets would open with falls >-2.0%, dragged down by the rapid increase in cases of COVID-19 in Italy and South Korea (+367 new cases outside China). Currently, S&P futures are down -1.56% (the S&P 500 closed -0.26% lower vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 17.08%). The Asian markets that are open are falling (Hong Kong -1.57%).
Today in Germany we will learn February’s IFO data and in the US January’s Chicago Fed index. In US business results, Intuit, ONEOK and HP, among others, will release their earnings. In debt auctions, France (€ 4.2 Bn in 3M, 6M, 9M and 12M T-bills).
COMPANY NEWS
ALMIRALL. Results’19 in line but guidance 2020 below expected. TO BUY.
Results’19 in the middle part of its guidance at the operational level (EBITDA € 304 M vs € 305 M BS(e) and € 309 M consensus) and better than expected at the debt level (€376 M vs € 402 M BS(e); ~ 1.2x NFD / EBITDA ex pension plans). However, the 2020e guidance (EBITDA between € 260 M and € 280 M with growth in low-medium digit sales) was well below our estimates and consensus (EBITDA € 310 M BS (e) and € 304.8 M consensus; -13% below average. Assuming this guidance in recurrence would have an impact of -10% on our T.P., which would be reduced to € 18/sh. (+42% upside). We expect a negative yet limited market reception, considering the stock’s recent performance (-17% vs. IBEX in the last month).
Almirall is engaged in the acquisition, manufacture, storage, sale and mediation in the sale of pharmaceutical specialties and products and all manner of raw materials used to prepare pharmaceutical specialties and products. Also, Co. acquires, manufactures, storages, sales and mediates in the sale of cosmetics, chemical, biotechnological and diagnostic products for human, veterinary, agrochemical and food-industry use, as well as all manner of utensils, complements and accessories for the chemical, pharmaceutical and clinical industries. In addition, Co. is engaged in the acquisition, sale, lease, subdivision and development of land lots, land and properties of all kinds.
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.
Caixabank is an investment company based in Spain. Co. is involved in investment portfolio management activities across two areas: Services and Financial Business and Insurance. In the services area, Co. provides investment solutions for companies involved in the infrastructure, energy, services and entertainment sectors. In the financial business and insurance area, Co. is engaged in the investments for international banks, insurance and specialist financial services. Co. focuses most of its banking investments in India, China, the U.S., and Central and Eastern Europe with a particular interest in retail banking. Co. is also involved in the disinvestments activities.
Melia Hotels International is the parent company of a group engaged in the acquisition, management and operation of hotels. Co. operates its hotel network in Germany, Argentina, Brazil, Bulgaria, Cabo Verde, Chile, China, Costa Rica, Croatia, Cuba, Egypt, Spain, United States, France, Greece, Netherlands, Indonesia, Italy, Luxembourg, Malaysia, Mexico, Panama, Peru, Portugal, Puerto Rico, United Kingdom, Dominican Republic, Singapore, Switzerland, Tunisia, Uruguay, Venezuela and Vietnam under the followings brandnames: Paradisus Resorts®, Melia Hotels & Resorts®, TRYP Hoteles® and Sol Hotels & Resorts®.
Red Electrica is engaged in the transmission of electrical energy, the operation of the system and the management of the transmission network in the Spanish electricity system. In addition, through its subsidiaries, Co. is engaged in the acquisition, holding and management of foreign securities, co-ordination of international exchanges, provision of telecommunications services for third parties, provision of consultancy, engineering and construction services outside the Spanish electricity system, securing of funds, carrying out of financial transactions and provision of financial services.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.