The Ibex 35 companies will continue to delight investors, according to the estimates of experts who monitor their behavior on the stock market, who believe that half of the companies in the index will appreciate by 20% or more in the coming months. Up to 17 companies offer these upside potentials and, of these, 11 have the best possible recommendation (buy), thanks to the algorithm used by this media with FactSet data.
Not all cases are the same, since the high performance of some of these companies is due to the correction that their securities are undergoing on the stock market and not to an increase in valuation by experts (such as Solaria, Acciona Energía or Grifols). However, there are others that reach potentials of 20% or more thanks to a strong improvement in their price target, such as the case of Rovi, Indra or Banco Sabadell, with revaluations of more than 30% in the three cases in their valuation since the start of the year.
The Ibex 35 as a whole currently has an upside potential of almost 11%, according to data from Bloomberg. The price objective established by the experts is 13,091 points, i.e. the highest level since 2011. This valuation has increased by 13% since January 1, compared to a 10% increase in the target price of the EuroStoxx 50, the main benchmark in the euro zone, in the same interval. The valuation of the European benchmark index deteriorated somewhat during the month of October and currently stands at 5,563 points.
Back to businesses, Grifols has the most mileage, at 58% from current levels. The company is among the most bearish of the year on the stock market, with a drop close to 35% after the various blows that its titles have suffered due to the various attacks received by the bearish company Gotham City Research. However, analysts consider that this is the right time to put the pharmaceutical group’s shares in their portfolio.
Rovi and Indra also occupy a special place in this ranking. Both companies have a potential of 35% and their stock market appreciation is around 20% in both cases. In its case, this strong estimate of the margin of increase is accompanied by a strong improvement in the valuation by consensus, of 55% in the case of Rovi and of almost 42% in that of the defense company .
In fact, Rovi is the one that has recorded the greatest improvement in its valuation since the beginning of the year among the Ibex companies with the greatest potential, and experts already see its titles at 96.28 euros. The pharmaceutical company’s story has been one of ups and downs throughout this year, with the stock hitting all-time highs in April. The recommendation also had its ups and downs, with analysts worsening the drug company’s guidance to the worst in four years. But the falls he suffered in September set back these experts who believe that Rovi is once again a “buy” on the stock market for the first time since April.
Banking entities are also among the companies with the greatest potential in the index also thanks to their strong valuation improvements. Unicaja, BBVA, Banco Santander and Sabadell are on this list, with price target increases of more than 15% in all cases except Andalusian, which has recorded more than 5% since the start of the year. Sabadell, in addition to being the most bullish entity on the Ibex, is the one with the greatest improvement in this sense, so after revaluation of 65% on the stock market, it still has an upside potential of 22% for the months to come.
And, in a context where interest rate cuts are at the center of the debate, analysts still expect good forecasts in the banking sector, since, among other reasons, rates remain at high levels despite the latest declines. “Spanish banks expect good results for the second half of 2024, thanks to still high interest rates and a faster-than-expected recovery in loan volumes. Asset quality remains strong, so that risks to profitability and organic capital generation are well controlled,” says Carola A. Saldias Castillo, banking analyst at Scope Ratings.
Thus, the improvement in the estimates of net and gross profits has been one of the levers of the improvement of the valuation in cases like ACS, Meliá or Sabadell, which are among the Ibex 35 companies in which the projections have the most increase.
No tour
Among the 35 companies that make up the Spanish index, only three are currently trading above the average valuation given by the analyst consensus: Inditex, ACS and Telefónica. The Galician textile company is the furthest from its price target, with shares already trading around 54 euros for the first time in its stock market history.
The construction group is also at its highest levels since 2007, with the stock market up almost 10% since the start of the year, leaving it 4.5% above its valuation. “Even if we consider that the listing of ACS offers limited short-term potential, we continue to believe that there is long-term growth potential thanks to its excellent positioning, both geographical and operational,” defends Renta 4 .
Telefónica’s fair price is currently 3% below the value of its shares, following a 2.6% increase in its valuation over the year, which is well below the 25% and 26% that increase the average target price of ACS and Inditex.
