Although the Ibex broke on Wednesday –after eleven sessions in the green–, August has brought with it a particular rest season for many values of the 35 club, with up to eight signatures of the same registering increases of more than 5% in these 18 days. These rebounds, however, have also translated into a snip in the target price of 16 companies in the index so far this month -although most have potential-, with Fluidra in the lead, with a cut of 7, 8% of its fair price.
The shares of the equipment and solutions company for swimming pools and wellness are not experiencing the push that was expected these weeks, due to the very nature of the hottest days of the year, and registered a tepid 0.2% in the month. Some figures that do not help it to leave the position of the most bearish firm on the Ibex in the calculation of the year, with a fall of more than 48%, according to FactSet.
In this sense, the company, which reported to the market at the end of July, made public the pressure that inflation is exerting on its business, since the first half of the year ended with an increase in sales of 22%, but with a drop in both profits and margins. Thus, with a current target price set at 30.15 euros -up from 32.69 at the beginning of the month-, according to FactSet, Fluidra offers an upward potential of 66%, that is, 17% lower than the route to 12 months that analysts gave him at the beginning of the month, 80%.
Solaria Energía, Indra and the banking sector are the following companies that see a greater cut in their target price so far this month, despite the fact that August has not gone equally well for all of them and only banks make profits on the stock market in this period.
The energy company, which advances more than 29% on the stock market this year and is already the most bullish firm, does not have the same luck this month and leaves 1.4%. Thus, its fair price suffers a snip of almost 4% in this interval, going from 21.2 euros at the beginning of the month to 20.3 today. It should be remembered that Solaria has been one of the great winners of the war between Russia and Ukraine, since this conflict revealed the basics, which has led to encourage the use of new energy sources.
The push of the banks
Banks, for their part, are other major beneficiaries of the inflationary environment since the beginning of the year. And it is that a runaway price rise has led central banks to execute a rise in interest rates in order to control said inflation, and with the possibility of another equal rise in September). A favorable backdrop for the banking sector, with all the entities of the club of 35 among the firms that made the most progress on the stock market this month, with BBVA in the lead, with more than 9%, followed by Banco Sabadell and Banco Santander, with more than 7% in both cases.
Thus, Banco Sabadell, Bankinter and CaixaBank, which advanced 13.8%, 5% and 3.8% in the year, suffered a cut between 2 and 2.7% of their target price in this period. And although their potential has also been reduced in August, they still offer some of the most attractive routes on the Ibex, with 51% in the case of Banco Sabadell, 27% in Bankinter and 24% in CaixaBank.
The case of Indra is the opposite of that of the banks, since the technology company has not managed to get off the ground on the stock market and the latest governance problems in its top management have done nothing but push its titles even lower. Thus, the company, which loses more than 11% in 2022, is also the most bearish of the Ibex in August, with losses of more than 5%. Despite having a potential of 44%, the firm sees a 2.7% cut in the target price set by the FactSet consensus in August. However, by PER (times the profit is included in the share price), Indra is one of the most attractive in the selective, with a current multiplier of 8.4 times.
Thus, regarding the current situation that equities are experiencing, Alexander Londoño, market analyst at ActivTrades explains: “Even if there is a downward correction of the recent rise in shares, it is not expected that reach the lows recorded in June. Therefore, it is not convenient to rush to close the current positions, but neither to add more positions until a change in the trend in the stock markets is confirmed”, he concludes.
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