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IBERIAN DAILY 10 FEBRUARY + 4Q’22 RESULTS. HIGHLIGHTS AND PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ENCE, LOGISTA, SACYR.

At the end of today’s report, and during the entire results season, we will include a presentation with positive and negative results highlights and previews for the 4Q’22 results to be released over the coming days in Spain.

Stock markets continue rising
Despite the Central Banks’ attempts to curb the euphoria and announce more rate hikes than those expected by the market, European stock markets continued to rise, this time with the IBEX lagging slightly behind and the US in negative numbers. Thus, in the Euro STOXX, Industrials and Autos led the gains, while Pharma and Chemicals were the worst relative performers. On the macro side, in Germany January’s inflation rose less than expected, although reaching 8.7%. In the UK, according to the RICS survey, in January housing prices fell the most since 2009. From the ECB, M. Kazaks warned that interest rates would continue to rise after March. In Mexico, January’s inflation rose in line with expectations but the Central Bank raised the reference interest rate by +50bps (vs. 25bps expected) to 10.75%. In Brazil, January’s inflation remained at 5.8% YoY, as expected. In China, annual inflation rose less than expected in January and production prices fell more steeply. In US business results, PepsiCo, Phillip Morris, Kellogg’s and Ralph Lauren beat expectations.
What we expect for today
European stock markets would open with drops of up to -1.0%, with growth hit slightly harder in view of the rising interest rates. Currently, S&P futures are down -0.1% (the S&P 500 ended -1.06% lower yesterday vs. the European closing bell). Volatility in the US rose (VIX 20.77). Asian markets are mixed (China’s CSI 300 -0.56% and Japan’s Nikkei +0.3%).
Today in the UK we will learn the 4Q’22 GDP and December’s industrial output, in the US February’s consumer confidence. In US business results, IQVIA and Global Payments, among others, will release their earnings.


COMPANY NEWS

LOGISTA. We raise our T.P. by +9% to reflect the latest acquisitions, roll-over and higher financial costs. BUY.
We have raised our T.P. by +9% to € 28.38/sh. (+16% upside) after including in our model the two acquisitions made in 4Q’22 (Transportes El Mosca and Carbó Colbatallé), which together contribute ~+23% of economic sales. We also include the impact from rate hikes on financial revenues and also the roll-over of our model. We still like the company’s high dividend yield (>6%) and reiterate our BUY recommendation. The stock has soared by +43% in the last year (+35% vs. IBEX35), meaning that profit-taking could be the reason behind the stock’s drop following the company’s earnings presentation.