The Ibex 35 holds above 11,500 points with the boost from IAG and despite the setback from Grifols

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By Jack Ferson

Spanish equities move again with cuts that, however, moderate in the final part of the session and allow the selective to remain above 11,500 points, supported by IAG (Iberia) and penalized by the large banks with BBVA and Banco Santander, again penalized like yesterday and Inditex, among those who fall the most. And all this despite the almost exclusive prominence of a Grifols that was frightening with its losses of over 13%, which have also moderated when it was confirmed that there will be no exclusion offer on the value.

Thus, at the close of the session, the IBEX 35 lost 0.33% to 11,579.50 points with the falls of Grifols A 9.08%, BBVA 1.70% and Inditex 1.56% and they stand out among the advances Laboratorios Rovi 2.07%, MERLIN Properties 1.47% and Solaria 1.28%.

The big negative protagonist of today’s session is Grifols A. And Brookfield abandons the idea of ​​launching a takeover bid on the stock.

This has been officially communicated to the CNMV indicating that “after exhaustive due diligence and taking into account the reactions of the Grifols Transaction Committee and the Grifols Board of Directors on the potential offer that were communicated to the market on November 19 2024, this morning Brookfield has informed the Grifols Transaction Committee that under the current circumstances “is not in a position to continue with a potential offer for Grifols”

The Canadian fund’s decision comes days after Grifols’ board of directors rejected a trial offer that valued the company at 6.45 billion euros, at about 10.5 euros per share.

For the financial markets analyst at Investment Strategies, Manuel Pinto highlights that from now on with Grifols “the doubts will continue and that investors who do not sell their shares now will have to be attentive to the fluctuations in value for several reasons.”

He points out that we will have to pay attention to whether it will be able to continue improving its cash flow, as it has done in the last quarter, but not in the previous ones, and whether it will continue to reduce its debt and its governance, which has brought it so many problems. since last January. Although 40% of its business depends on the US, Although the truth is that we will also have to be attentive to the impact of Robert Kennedy as secretary of health, with his anti-vaccine positioning.

And from Barclays They overweight the value with a PO of 14 euros and a potential of 31.4% about its current price.

Also Indra with the potential of a purchase of Hispasat on which it returns and the recommendation of JP Morgan analysts.

Specifically, the American firm has decided to raise Indra’s target price up to 21 euros per share, compared to the previous 20.50 euros. Using yesterday’s closing as a reference, this new valuation represents an upward potential in the stock market of 26.88%.

IAG (Iberia), on a positive note, since it took off on Friday above 3 euros per share, continues its ride towards new highs and does so hand in hand with the new recommendations. Goldman Sachs has left its rating on buy the value, with a target price of 3,588 euros per share, which means, compared to yesterday’s closing of the value, of a potential improvement in its price of up to 18.4%. The management of the airline holding company is confident in the change of direction of British Airways, according to the American firm’s analyst Patrick Creuset after the British company’s investor day.

Also Barclays speaks out on IAG, with an improved potential of up to 26.5% to 3.827 euros per share. He highlights that British Airways is not yet a great airline, but it is improving rapidly, in terms of product, digitalization and operations.

More recommendations. RBC, in its report on European banks, highlights BBVA over Banco Santander, to whom it gives much more upside, although without moving either its recommendations or its PO on both Spanish entities.

In this way, he qualifies as overweighting BBVA shares with a target price for the value that stands at 11 euros per share. This OP gives the Basque financial entity a potential improvement in its price compared to yesterday’s closing of 23%.

Already in the case of Banco Santander, RBC qualifies the Cantabrian financial entity as neutral or ‘performing sector’ with a target price of 4.95 euros per share. In this way, the possible potential improvement of Its upward trend would be 12.5% ​​since its closing yesterday.

Already in the rest of Europe, a session of generalized cuts from which only London is spared, with utilities and non-cyclical consumption that rise in the EURO STOXX 50 compared to the falls in energy, technology and basic materials.

Among values, they rise this Wednesday Airbus, Novartis and Unilever in the first positions against the falls attributed to values ​​such as Axa, ASML and Novo Nordisk

At the market close, the EURO STOXX 50 lost 0.62% to 4,732 points, the CAC 40 fell 0.72% to 7,143 points, the Dax gives up 0.16% to 19,274 points, and the session in London ends for el FT 100 with gains of 0.21% to 8,276 points.

Already on Wall Street, Dell Technologies plummets about 12% on Wall Street after announcing weaker-than-expected revenue during the fiscal third quarter. Dell posted $24.37 billion for the period, which is less than the $24.67 billion analysts had expected. However, adjusted earnings beat Wall Street expectations.

Also strong falls for HP, which fell 12.83% in the middle of the session after presenting weaker-than-expected earnings guidance for its fiscal first quarter of 2025. HP expects to earn between 70 cents and 76 cents, excluding items, while analysts had expected 85 cents per share for the period.

All this while we have known the publication of the October personal consumption expenditure (PCE) price index, which was released shortly after the opening. The interannual data core, which excludes energy and food prices, stands at 2.8%in line with expectations.

Also the American GDP of the of the third quarter, which shows a growth of 2.8% in interannual terms.

At the close of the Spanish stock market, a mixed sign for the indicators, with the DOW JONES Ind Average gaining 0.30% and standing at 44,893 points, with the S&P 500 losing 0.44% to 5,995 points and a Nasdaq OMX that reduces its performance by a significant 1.05% to 18,974 points.

Bonuses are going down at this time, with returns that in the case of the 10-year Spanish one cut by 0.1.23% to 2.899% while the German 10-year bund lost 1.14% to 2.1725%. The Spanish risk premium ends Monday at 73.95 basis points with falls of more than 3.8%.

Slight rebound in oil, in raw materials markets with Brent advancing 0.22% to $72.48, while West Texas gains 0.32% in price to $69.01, Gold Futures also maintain gains, with advances of 0.77% to $2,666 per ounce.

The Euro Dollar ends the day at 1.0560 units, with advances for the single currency of 0.71% against the American greenback.

And Bitcoin that gains positions, 3% and It is changed, at the close of the Ibex 35 at $95,642 per asset.

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