Logistics keeps pace with the stock market. The company’s share price reached an unprecedented 29.9 euros, bringing its market capitalization to 3,970 million euros. In this way it is located at a increase of less than 1% to reach 4 billion and continue to set new all-time highs.
The company started the year with a market capitalization of 3.2 billion, but after cumulative increase of 22.1% in 2024manages to steal the positions of Laboratios Rovi, Inmobiliaria Colonial and Enagás. In this way, Logista positions itself with this Thursday’s prices as the twenty-sixth in size on the trading floor within the Spanish selective. Furthermore, analysis firms still consider that value has a way to go.
The market consensus which reflects Bloomberg sets the price target at 32.4 euros per share. This would give an upside potential of 8.3% with the third best buy recommendation of the Ibex 35 according to The Ibex League elEconomista.es which combines the advice of experts who bring together Bloomberg and FactSet. Only Sacyr and Rovi collect better reviews that the company focused on distribution and products such as tobacco.
The experts’ valuations also did not deteriorate after the publication of their results for the third quarter of the year on November 6. The operating profit for the first nine months of the year exceeded its 2023 accounts by 11.2% with an ebit of 326 million euros and a net profit of 308 million. Sales increased by 4.5%, setting new records. Additionally, they were higher than what the average analytics company expected. However, at Logista, one of its strengths in recent years is languid, which will become more pronounced as the European Central Bank (ECB) eases its monetary policy.
After the ECB’s first interest rate cuts, Logista’s revenues from the use of its liquidity will decrease. The company is counting on it additional for the interest it charges Imperial Brands (the parent company) for the money it lends in two tranches, one at a fixed interest rate and the other linked to the six-month Euribor plus of 75 basis points. While the ECB lowers its interest rate (deposit facility rate) from 3.25, the Euribor will evolve in the same direction and the logistician’s interest in lending its liquidity will stop reporting current performance or those noted in previous exercises
Following the third quarter results, the board of directors proposed to shareholders the distribution of an additional dividend for the 2024 financial year of 203 million euros which would be paid in the first quarter of next year. This payment would amount to 1.53 euros per share. Already on August 29, the payment linked to the 2024 financial year of 0.56 euros per security was paid, which represents an increase in the 14% compared to the same dividend of the previous year.
If this supplement is confirmed, the total profit distributed by Logista to its shareholders would amount to 277 million euros (nearly 2.1 euros per share), which would imply exceeding by 13% what was distributed in 2023 with a payment by 90%.
