Report
Research Department
EUR 100.00 For Business Accounts Only

IBERIAN DAILY 12 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CELLNEX, FERROVIAL, GRUPO SANJOSE, REPSOL, TELEFÓNICA, VIDRALA.

The Ibex near 17,000 points
European stock markets climbed near 1% yesterday after the Fed’s rate cut and despite doubts surrounding the technology sector after the poor reception of Oracle’s results. In the STOXX 600, Construction (that rallied after being the worst-performing sector last Wednesday) and Leisure, closely followed by Banks led the gains whereas Utilities and Energy were almost the only sectors ending with drops. On the macro side, in the US, weekly jobless claims rose more than expected. In Brazil, October’s retail sales climbed unexpectedly. In China, President X. Xinping was satisfied with the fulfilment of the 2021-25 plan, reiterating his commitment to implement more proactive and impact policies and continued to bet on quality production forces. On the geopolitical front, V. Zelenski opened the door to a referendum so that the country can decide on Donbás territorial issues whereas D. Trump suggested the need of a demilitarized zone between Ukraine and Russia.
What we expect for today
European stock markets would open with gains of around +0.5% with the recovery of the technology sector and with cyclicals faring better. Currently, S&P futures are up +0.1% (the S&P 500 ended up +0.3% vs. the European closing bell). Asian markets are climbing (China’s CSI 300 +0.60%, Japan’s Nikkei +1.4% and Korea’s Kospi +1.3%).
Today in the UK we will learn the quarterly GDP, October’s industrial output, in Germany and Spain November’s final inflation and in Mexico October’s industrial output.

COMPANY NEWS

GRUPO SANJOSE. We raise our T.P. by +5% to € 10.08 sh. OVERWEIGHT.
The share price has seen an excellent performance in the past 12 months (+61%, +12% vs. IBEX) but we believe it still yields additional upside. We raise our T.P. to € 10.08 sh. (+36% upside) after updating our valuation for GSJ’s different assets. The construction business and cash generated and not distributed in the past year explain the improvement, mainly offset on the negative side by Carlos Casado (-30% correction since our previous report) and by the energy business. Net cash as of Sept’25 totalled € 437 M, and adjusted for the amount of balance-sheet provisions it would stand at € 357 M, equivalent to 74% of market cap.
Underlyings
Cellnex Telecom S.A.

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.

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.

Grupo Empresarial San Jose S.A.

Grupo Empresarial San Jose SA is a Spain-based holding company. The Company's main activities are structured in four business areas: Construction, which comprises the construction, design and execution of public and private infrastructure projects; Real Estate, which specializes in the acquisition and development of residential and non-residential properties; Energy and Environment, focused on the initiation, development and operation of energy efficiency projects using renewable energy, and Concessions and Services, which includes the management, operation, exploitation and maintenance of infrastructure, hospitals, public and private facilities, urban real estate, parks and gardens. The Company is a parent of such a number of controlled entities as Constructora San Jose SA, Cartuja Inmobiliaria SAU, Desarrollos Urbanisticos Udra SAU, San Pablo Plaza SAU and Comercial Udra SA, among others.

Telefonica SA

Telefonica is engaged in the provision of public or private telecommunications services, including ancillary or complementary telecommunications services or related services. Co.'s fixed business includes: traditional fixed telecommunication services, Internet and broadband multimedia services, data and business-aplications services, and wholesale services for telecommunication operators. Co. also provides a range of mobile and related services and products to consumer and business customers, including mobile voice services, value added services, mobile data and Internet services, wholesale services, corporate services, roaming, fixed wireless, and, trunking and paging.

Vidrala SA

Vidrala SA is a Spain-based company principally engaged in the glass industry. The Company operates through two segments: Spain and European Union. The Company's activities include the production, distribution and sale of glass bottles and containers used in the food and beverages industries. The Company conducts its own research and development (R&D) operations. It operates production plants and melting furnaces located in such countries, as Portugal, France, Belgium and Italy. The Company owns such subsidiaries as Crisnova Vidrio SA, Inverbeira Sociedad de Promocion de Empresas SA, Gallo Vidro SA, Castellar Vidrio SA, Corsico Vetro SRL, MD Verre SA, Omega Immobiliere et Financiere SA, Investverre SA and CD Verre SA.

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