The European stock markets have started the year with a thirst for a rebound, especially the Spanish one. Within the Madrid stock market, the Ibex Small Cap has taken the lead and almost doubles the rise experienced by the Ibex 35 so far in 2023. This index, which brings together 30 small-cap companies, expresses the optimism of investors in the variable income and accumulates a rise of 15.35%, up to 8,287 points. The revaluation almost doubles that of the Ibex 35, which registered a rise of 8.69% since January 2 and triples that of the Ibex Medium Cap (+5.57%).
The rebound has occurred in the middle of the hit of values such as Airtificial, whose stock market value shoots up more than 96%. As this medium published, its vertical escalation coincides with the reinforcement of two historic shareholders in the capital, Leonardo Sánchez-Heredero and Ladislao de Arriba, who already control 45% of the robotics firm and coincides with the departure of Black Bull Capital (BTC).
Audax Renovables has also joined this ‘rally’. The group founded by the Catalan businessman José Elías Navarro has managed to soar and was trading at 1.4 euros at the market close this Monday. His intention to build a mega solar plant in Guadalajara has aroused the interest of investors. Added to this is the share repurchase plan announced in December last year with the aim of acquiring 0.18% of the capital for one million euros, which can serve as a lever to boost its stock market valuation.
Although at a greater distance, Prisa is revalued by 34%, Soltec by 29% and Duro Felguera by 26%. In sixth place is Iberpapel Gestión, which rose 20%, and Nextil, which achieved another 20%, almost a month after its entry into the index, replacing Unicaja Banco. This Monday, the Growth Inov fund has committed to Playvest, the Portuguese subsidiary of the textile group, to carry four million euros to finance the issuance of a convertible bond. A change will receive treasury shares or through a new issue.
The XTB analyst, Joaquín Robles, points out that these increases have occurred in the heat of the investment drive for purchases in the last three weeks. So far, the moderation in the growth of CPI rates in most economies and the reopening of China has generated “appetite” for risk, which includes smaller capitalization companies, which in turn are more ” vulnerable to economic prospects and are more exposed to speculative movements,” Robles says. It should be noted that the Ibex Small Cap came from falling almost 13% during 2022, to 7,185 points, more than double the decline experienced by the Ibex 35 (-5.56%), so with this rebound it still does not compensate for the hit of the last twelve months.
It can go down to 46%
The Bloomberg consensus sees a potential for the Small Cap of 46%, with 53% of analysts recommending buying and none selling, despite the “uncertain” situation. The figure contrasts with the journey of almost 14% given to the Ibex 35, after updating its margin of rise to 10,183 points. In the case of the Ibex Medium Cap, the route is almost 20%. Among the thirty stocks, the experts focus on Orizon.
The technology company is trading at a price of 2.68 euros, 221% below what it can advance in the next twelve months, while analysts surrender to this value, placing their full confidence in the possibility of takeoff. In this sense, the shares of the DIA group also stand out, for which the consensus contemplates a possible rebound of more than 110%, going from 0.0142 euros per share to those listed at market close this Monday, up to 0. .03 euro
On the other side of the coin is Iberpapel Gestión, whose valuation, at 11.95 euros, is above its twelve-month target price (15.7 euros) and has become the ‘ugly duckling’ of the houses of analysis. The state of mind of investors clashes with the perspectives of analysts, who warn of possible corrections given the possibility that the market has not discounted a possible fall in corporate profits and, with it, an adjustment in valuations.