The renewed uncertainty about the definitive reopening of tourism in the face of a summer that has already begun has once again brought some anxiety to the course that was guiding the Spanish stock market to recover from pre-Covid levels. The Delta variant of the virus has rekindled old fears and caused sales in the Spanish market, although some stocks still accumulate double-digit gains for the year.
While the market is debating between breaking up or prolonging the consolidation, there are up to 26 companies on the Spanish stock market in which analysts have improved the recommendation despite achieving significant increases so far this year. The ones that stand out the most in this area are Sabadell , Rovi , ArcelorMittal , Santander and Atresmedia , with rebounds of more than 25% and improvements from the board.
The first of them, Banco Sabadell, has recorded around 65% so far in 2021 and is one of the most bullish stocks in the entire Ibex 35, only behind Fluidra. It started the year as the worst recommendation of the entire index and, although it continues to receive a sale sign, it is getting closer to maintaining, according to the recommendations that the Economist elaborates with the FactSet algorithm.
It is not the only bank in which this situation has occurred, since Santander, which has reached a 34% increase since January 1 and which began the year with a council to keep, the green traffic light is approaching. It has also happened in Liberbank, which has gone from holding to buying after a rise of more than 29%.
Another of the clearest cases has been that of Rovi. The pharmaceutical company has been in the trigger after its agreement with Moderna, not only for the filling of vaccines but now also for the manufacture of the active principle. In addition to the economic benefit that this agreement will bring to the company, it has put it in the spotlight of the news in recent months, and investors have bounced it by 53%, taking it to all-time highs.
This rise has also contributed to its approach to becoming part of the Ibex in future reviews, something that has also paved the way for the latest sale of a share package by the founding family, López-Belmonte. The pharmaceutical company began the exercise with a purchase recommendation that was close to maintaining and now ranks as one of the best advice in the entire national stock market.
Another example is ArcelorMittal , the undisputed protagonist of the strong appetite that investors have shown for cyclical stocks in this first half of the year. Its titles have scored about 42% this year and are trading at levels not seen since 2018, leaving the impact of the pandemic far behind and, although it has always had the support of analysts, it has been reinforced in recent years. months to the point of being the best recommendation of the Ibex 35. All despite the halt on the road that occurred last June.
Another of the most drastic cases has been that of Atresmedia, as it has been the company in which analysts have improved the recommendation the most throughout the Spanish stock market, according to the consensus algorithm. The media has gone from a clear advice to sell to touch the purchase at the same time that the price of its shares has risen close to 29%. Its good time is due to, among other factors, the success of the Atresplayer platform, which has already reached the figure of 455,000 paying subscribers, something unheard of for a local service like this.
In this list of bullish companies in which the recommendation has also improved, there are more stocks on the Spanish stock market such as Telefónica, Metrovacesa, Cellnex, Airbus or Corporación Financiera Alba. All of them have, at the same time, still double-digit bullish potentials for the next twelve months.
Only six like less and they fall
On the contrary, in the Spanish market we only find six companies that have worsened their recommendation despite the fact that they have lost value on the stock market so far this year. They are CAF, Faes Farma, Grifols, Prisa, Red Eléctrica and Aena.
Although it is true that in the cases of the railway manufacturer and the biopharmaceutical, they already started with two buying tips before the beginning of the course, something that they retain but that has not been worth them to attract investors’ purchases, leaving in this period around 8% and 4% on the stock market, respectively.
Red Eléctrica de España, for its part, recovered the advice to maintain in 2020, but regulatory uncertainty has weighed on its titles, which gave up just over 1 percentage point in the stock market for the whole of the year and once again received the worst of the recommendations, that of selling, to which Aena and Faes Farma are already approaching.
Amadeus, Viscofan and other council changes
Although they have made more modest rallies, there are other companies that have also improved their recommendation this year considerably. Within the Ibex this is the case of Amadeus, one of the most punished in the stock market by Covid due to the very nature of its business and which has managed to get rid of the sales ‘cartel’ with which the exercise began.
In the antipodes, Viscofan, which was one of the values that showed the most strength last year as its demand was not reduced and which, like Amadeus, has also moved away from the sell recommendation. Outside the Ibex, another striking case has been that of Vidrala, which already receives a purchase advice despite scoring more than 5% this year and, above all, trading at record highs after a record 2020.
In Neinor, the consensus of analysts has returned the purchase advice after more than a year and they have raised their net profit forecast by 20% in these six months for 2021.