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The strong potential of the bank opens the door to 11,000 points on the Ibex 35

Date: March 2, 2024 Time: 00:01:16

The Ibex 35 is on its way to healing the scars caused by the financial crisis in March. After finishing ESTE VERNES IN THE 9,495 Points, With Which He Puts A Shot The Annual Highs Of 9,511 Points That He Recorded Before The Descario Concario They Get In Silicon Silicon Valley, The Spanish Stock Market Reference Fights To Reconquer New Resistances. Unless another obstacle appeared that acts as a brake, the first litmus test will be in his ability to exceed the aforementioned mark, to then beat 10,083 points, the psychological barrier in which he found himself before the Covid pandemic fever attacked him in February 2020.

A psychological level that, if achieved, will open the way to attack 11,000 points, which is the twelve-month target price given by the ‘Bloomberg’ consensus after the latest revisions, which translates into a potential of 16.2 %, with data at the close of the markets this Friday. The estimation of this boost is based on the growth projection that analysts give to the Spanish banking sector on the stock market, which has a representation in the index close to 30% and which will play a decisive role in achieving an unprecedented level since May 2017.

Now that the headwinds have reversed and fears of a Lehman Brothers 2.0 have faded (for the moment), the possible revaluation that the six entities may experience gives wings to the Ibex 35. “Banks are the ones that have performed the worst registered, so now they transfer their potential to the indices,” Federico Battaner, head of variable income at Trea AM, points out to La Información. In this sense, Banco Santander and BBVA stand out, two of the heavyweights of the index, with a weighting of 10.5% and 8%, respectively, whose potential acts as a catalyst.

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Specifically, in the case of the entity led by Ana Botín, this precedes 40.4%, being the third value with the longest run over twelve months, while in the second it is 24.1%. All this despite the fact that these two firms, which stand out for their great international presence, are among those that pivot the most within the sector, with an ‘acceleration’ of 14.9% for the entity based in Boadilla del Monte and 20, 5% for the group led by Carlos Torres. In between Banco Sabadell sneaks in, registering a ‘rally’ in the annual computation of 15.86%, with which it reduces its potential to 34.3%.

Domestic banking has suffered major bumps in recent months, from which it has not yet recovered, as is the case of Unicaja Banco, which still posts a fall of 8.7% so far this year. This makes it the bank value that can rise the most, according to analysts, with a possible rebound of up to 43.1%. In fact, except for Grifols, which has room to climb 50% given the high volatility it is experiencing, experts believe that no member of the Ibex can score a greater advance.

Halfway there is Bankinter, which presents a potential of 26.8%, after falling 8% since the start of the year, while CaixaBank, whose shares are up a modest 2.1%, lags a little further behind and is awarded a possible 22% rise with the latest revisions. It should be noted that these two companies were together with the firm headed by César González Bueno, which pulled the cart in the previous year. In this regard, the analysis houses already predicted at the beginning of the year that banks would be a real gold mine for the Ibex after in 2022 – a disastrous year for equities – it will help cushion the blow to the markets with a modest retracement of 5.56%.

4% at this Thursday’s meeting, has reinforced interest in this type of stock. All this despite the fact that the market already discounts that the pause in the reference rates of money will occur no later than the final stretch of this 2023.

However, the key is when the decline will begin, something that José Ramón Iturriaga, manager and partner of Abante Asesores, rules out in the short term. “The banks are the great beneficiaries of an environment of high inflation, which is here to stay, and of high rates,” precisely. On their side, from Renta 4 they argue that “the positive impact that the rise in interest income has for the balance of banks is greater than the risks associated with economic deterioration and, therefore, an increase in the delinquency rate” .

Watch out for Cellnex and Amadeus

With analysts in the race to revise Iberdrola and Inditex, the two bastions of the Ibex, with a weight of 15.3% and 12.97%, after the energy company approaches the maximum of 12.5 euros After closing this Friday at 11.8 euros per share and the textile giant points to the highs of 2017, when it exceeded 36 euros per share, compared to 34.4 euros yesterday, which leads them to exhaust their potential, the experts invite other values ​​such as Cellnex to follow the trail. The tower manager has slipped into the upper part due to annual revaluation (+18.56%) and could still be worth 35% more.

In this line, they also focus on Telefónica (22.6% potential) after advancing a slight 7% since the beginning of January, as well as on tourism values, among which Aena stands out, which gained 25.8 % in the last five and a half months, to which another 13.9% could be added, according to consensus. IAG, for its part, has almost 20% growth left after rising more than 39%. The tourism sector has taken advantage of the tailwinds and appears in the ‘noble zone’ of the selective, which leads companies like Meliá to approach their potential (+4.3%).

However, there are also some that have already exhausted it, as is the case with Amadeus after overtaking the rest of the companies in its sector on the left in recent weeks. The technological services provider is already trading 2.2% above what investment banking considers, up to 69.92 euros per share. But it is not the only one. At the present time, up to a total of four stocks are above the target price. These are Naturgy (-9.2%), ACS (-3.9%) and Enagás (-1.6%).

In this context, the selective accumulates a ‘rally’ of 15.38% since the beginning of 2023, which means that it is the third momentum it has registered in this period, behind the Italian FTSE MIB (+17.5%) and the German DAX (+17.48%). Behind them are the French CAC (+14.1%) and the British FTSE 100 (+2.56%). With these data, the map of the potential is quite uneven between the places of the Old Continent, for which Milan is expected to be the one that advances the most (+20.3% of potential), together with London (+18.8%) and Frankfurt (+ 17.1%). This leaves the Ibex (16.2%) in the background, as well as Paris (+14%), which has lost some strength and is installed at 7,388 points, slightly below the 7,577 that helped it rise. reap a new all-time high.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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