Gesconsult | Grupo Iberpapel Gestión (IBG) is one of the key players in the printing and writing paper market in Spain. We like Iberpapel because of its high level of vertical integration and its healthy financial situation. It generates a lot of cash and has no debt.
Cie Automotive, the Spanish company which specialises in producing components for the automobile sector, registered a 25.5% rise in net profit to 123 million euros in the nine months to September from a year earlier. Link Securities has calculated a new valuation for the company which at current prices offers a potential upside for CIE’s shares of over 7%.
Barcelona-based on-line agency eDreams, is an investment opportunity, according to Bankinter analysts. They offer three reasons: it is trading at much cheaper multiples (more than half) than its peers. The range, applying reasonable multiples, is slightly higher than the current one but much lower than the sector. So it has significant potential.
The group representing the small creditors and bondholders affected by Abengoa’s situation has recommended they do not sign up for the Spanish company’s financial restructuring plan. In the opinion of the representatives of this organisation – La Plataforma de Perjudicados por Abengoa – the best solution is to go ahead with bankruptcy proceedings.
Diego Salvador (Gesconsult) | N+1 is a financial institution focusing on two business areas: advising on mergers and acquisitions and the management of a venture capital firm. The company is developing a very successful franchise thanks to the purchase of “boutique” investment banks in the US, as well as in countries like Germany, Austria and Japan in the near future. We are confident that it can continue to expand their business inorganically with continued acquisitions in attractive countries like the US.
Earlier this week, OHL sold 4.425% of Abertis (43.83 million shares) at 13,65 euros/share via placement with institutional investors. With this operation OHL will reduce its debt and also free itself up from its previous strategic commitment to Abertis in Brazil, which prevented it from expanding in a country which will have privatisations in the coming quarters.
On Wednesday during its Investor Day in London, Prosegur announced a restructuring, aimed at changing its management model, as well as the possible IPO of its Cash in Transit (CIT) business. This is slated to take place in the first half of 2017.
We are updating our target price on Viscofan, with a HOLD recommendation. Viscofan will increase its net cash in 2016e (vs 0,4x DN/EBITDA 2014 and 0x DN/EBITDA 2015), given its strong capacity for cash generation. Viscofan is the only supplier in the world to make artificial casings for meat products in the four commercially available technologies (cellulose, collagen, fibrous and plastic).
Alfonso de Gregorio (Gesconsult) | Europac is a company which is involved in all sectors related to the paper and packaging industry. It’s a highly cyclical company trading at a 10% discount versus the average for the sector, both in terms of PER and EV/EBITDA.
FCC’s story this year has been marked by the mandatory takeover bid by Carlos Slim’s fund Inversora Carso. The bid was launched in March and completed on July 15. Grupo Carso now owns 61.11% of FCC and is the largest shareholder, while Esther Koplowitz is the second biggest with 20%. The company has just left the Ibex 35 blue chip index.