Grifols regroups after sale of Shanghai Raas

Action Grifols experiences days of strong emotions on the stock market after the announcement of the sale of 20% of shares Shanghai Raas (SRAAS) To the group Hayer. An operation that is key to reducing the company’s high debt.caused the price to plummet by 5.5% last Wednesday.. But the level of blood product groups has fully recovered.

The price of Grifols rose by 2.41% yesterday to €9.34. and continues the achievements of the last two sessions of last week. In three days, Grifols gained 7.6%, regained all the losses from June and opened the door to closing its positions. fourth month in a row of gains in the stock market after the collapse caused earlier this year by a report in which Gotham accused the Spanish company of falsifying its reports.

After small gains over the last three sessions, the stock is 2% above the €9.14 level it was trading at when news of the sale of 20% of SRAAS broke. Although the company still has a big loss of 39.5% this year, it is the biggest loss among the 35 Ibex companies.The company is gradually regaining investor confidence.

The sale of 20% of SRAAS is key to reducing the group’s large debt. What the operation will mean for Grifols extraordinary income is estimated at 1.6 billion. Euro. The amount that the group will use in full to cover part of its debts due in 2025 and 2027.

The ultimate goal is reduce the debt ratio to 4.5 times EBITDA by the end of 2024. At the end of the first quarter, the group’s net financial debt amounted to EUR 9.811 million.

recommendations

The operation significantly changed recommendations from analysts who follow Grifolswhat now He only has two sales recommendations.According to Bloomberg analysts. Two thirds of recommendations are now buying.

The most astonishing movement was carried out Deutsche Bank, which removed the stock from its list of least preferred companies, upgraded its recommendation from “buy” to “hold”. and a target price of 8 to 9 euros. However, this is 3.6% below the market price. In its turn, Bestinver, whose target price is under consideration, just recommended buying Grifols with a target price of €13.50., which represents a growth potential of 44%. However, it is reduced from the previous 15.50 euros.

On the other side of the scale, Bankinter decided to maintain a sell recommendation because, although he believes that SRASS’s work is on time, he includes “a negative surprise when he learns that there is a requirement for a minimum EBITDA, dividend distribution and pledge of the remaining capital that Grifols maintains in Shanghai Rass in favor of Haier” .