Puig will come out for Ibex on the 22nd, replacing Melia.
The Ibex Technical Advisory Committee took the decision at an extraordinary meeting today, which is the first change in the composition of Ibex since December 2022, when Unicaja joined.
green light in First change in Ibex line-up since December 2022. The Ibex Technical Advisory Committee (CAT) held an extraordinary meeting yesterday and decided to include Puig Brands in the qualifying round, replacing Meliá. Change It will come into force on July 22 next year..
The hotel company, despite growing more than 25% this year, has long fallen short of the index’s minimum capitalisation requirement (0.30% of the Ibex average capitalisation).
Although Puig Brands has only been listed since May 3, with a market value of over $14.5 billion. compared to Meliá’s 1.6 billion employees, as well as its high hiring volume, make it worthy of a place in the Ibex ranking. It is the fifteenth company by market capitalization, behind Repsol and ahead of ACS.
Puig’s arrival symbolizes first change at Ibex since its accession to the Unicaja select group on 27 December 2022which replaced Siemens Gamesa after an extraordinary CAT meeting over a takeover bid for the parent company of the renewables company, which was eventually delisted from the stock exchange. In the same month, Logista replaced PharmaMar in the index.
Puig is rising on the stock market compared to the 24.50 euros at which it was listed on the stock market among institutional investors. in May last year. It debuted on May 3 and its value rose to 27.60 euros at best (June 12 last year). It was the first rise after three sessions of declines that brought the perfume and beauty company to 25.38 euros.
“Although the company was listed on the stock market at a reasonable price, we believe that it is good news for Ibex that it includes a company of Puig’s quality and size. Moreover, it is involved in a business that is of interest to international investors,” comments Josep Prats, manager of Abante.
Experts believe Puig could benefit from the tailwinds associated with inclusion in the index, thanks to positions taken by managers copying Ibex and the foreseeable wider analyst coverage, comments Natalia Aguirre of Renta 4.
Ratings
Puig’s upside potential is about 15%, to 29.43 euros, according to the average price target of eight companies compiled by Bloomberg.
Lola Jacouto of Finaccess Value sees it as positive that the Spanish market is diversifying into this type of business, but believes that its multiples are high. “Assuming they grow by 15-20%, the company could have a potential of up to 14 billion, which would be equivalent to trading at PER is 25 times higher than comparable companies such as Coty.“.
CaixaBank predicts that by the end of 2025 it will rise to 34.5 euros, and JPMorgan to 32 euros. and he even sees potential for up to 39 euros in an optimistic scenario in which the perfume business is strong. Javier Galan, investment director at Renta 4, emphasizes that Puig has very well-known brands with great growth potential in both the western and eastern regions, where its brands are currently underrepresented and where it sees great growth opportunities.
The most pessimistic company Morningstar (which was not an underwriter), which values Puig shares at €23.below yesterday’s close. He insists that his price is expensive and criticizes the brand’s lack of intangible assets and small scale compared to the likes of L’Oreal and Estée Lauder.
Melia
Despite Meliá’s exclusion from the index, analysts are optimistic about its stock market performance due to its growing business.