Ibex 35 hits August with highest potential since October, with analysts pointing to nearly 13,000

Recent upward revisions of estimates According to analysts from major Spanish companies, the potential of Ibex 35 continues to increase. theoretical purpose of the index given the combined recommendations of the stocks it covers, it just outperformed 12,800 points for the first time in almost a decade.

And it keeps growing, though Capricorn Quote 35 seems to be stuck below its yearly highs. It revaluation potential since its last close at 11,117 this Monday, July 29, and its fundamentals-based target is the highest (+15%) since October 2023.

From the beginning of 2024 The theoretical price of the stock exchange directory rose from 11,500 to 12,800According to a Bloomberg consensus of banks and brokers, it has risen by 200 points in July alone and could reach 13,000 points in August if the trend continues.

He Ibex 35 ends July slightly ahead monthly at 1.5%, which should be confirmed between today’s session, Tuesday, and tomorrow’s session, Wednesday. The annual balance for 2024 will remain healthy at over 10%. But the next stock market move is yet to be written.

There are likely to be two critical days ahead due to the publication of inflation data, as well as corporate results from some countries. Wall Street’s Tech Heavyweights and others from the Spanish index itself on Wednesday July 31or there will be a storm in business reports, because this is the day when most of the multinationals in the index will pull down the blinds and go on holiday, reporting data to the market. As a final touch three central banks (the Federal Reserve, Japan and England) They will take to the stage from Wednesday to Thursday.

In the background, investors continue to look askance at the horizon as summer returns with the US elections. Chris Iggoinvestment director of a French manager AHA IM, believes that the Republicans’ political platform and the proposals of Donald Trump, the favorite in the polls, could upset the Fed’s calm in the final period of the year.

“Most of proposals will tend to increase inflation: import tariffs, restrictions on immigration, and a preference for lower taxes, and little sign of any attempt to reduce the federal deficit. A Trump presidency would be positive for sectors of the economy. oil and gas, cryptocurrencies, artificial intelligence (AI) and sectors that will benefit from protectionism (cars) and deregulation (pharmacist), he comments.

On the other hand, the Axa expert warns that the excessive financial generosity promised before the November elections and the aforementioned combination of inflationary components of the Trump-Vance tandem may soon collide with investment sentiment.

“Market distortion could lead to rising yields on government debt and the cost of borrowing by companies. Trump’s proposals could become the main obstacle for greater growth Renewable energy. In fact, investments I.S. G “It will be more difficult in the US in the coming years,” Iggo predicted in a research note.

What are the seven cheapest stocks?

At the head of the securities with the greatest potential, the gap between their actual price and the consensus price continues Grifoli. Since the January meltdown in Gotham, the drug company has maintained a huge gap between what the sellers (brokers) think and what the “buy side” — the actual investor who puts his money at risk by buying its shares — does. The 12-month return, if the waters return to normal, is currently 78%.

It is followed by two steel companies included in the index. Arcelor Mittalwith 46% of trips, and Acerinoxand another 41%. The securities also appear undervalued in the eyes of investors and experts. Sellnexwith a potential of 39%; Acciona Energía (+35%); Repsol (+34%); and the airline consortium IAG (Iberia) – 34%.

Those that are expected to grow the least according to this fundamental valuation criterion and are therefore more expensive in the stock market are, in the following order: telephone (+1.6%), ACS (+4.8%) and Naturgy (+5.5%). It is curious that three companies that had a common shareholder for only a few months: the holding Kaish criteria.

Electric Iberdrola (+6.5%), textiles Inditex (+6.4%) and dealership center Ferrovial (+8.2%) follow in the ranking from lowest to highest potential. The three multinationals are more fundamentally adjusted, closer to analysts’ opinions and with lower costs. opportunities for improving the situation on the stock market.

One of the most frequently covered sectors of the Spanish market is insurance. Bank of America decided to bet on Mapfre because they believe that Latin America gives their business an advantage over other, more domestic options such as Línea Directa, which they attribute to a lack of scale.

“ Mapfre’s Profitability in Spain “Disappointed once again, but other regions more than compensated. Barring extreme weather conditions (in Brazil or the northeastern US), the United States and Latin America should continue to “buy” time for the group to recover its Spanish business, the recovery of which we expect to be delayed,” they explain in a report published this Monday.