Sunday, December 5

Enagás suffers a new bearish siege after exhausting its potential

The hedge fund Millennium returned to the charge against Enagas in two ways. On the one hand, the hedge fund raised its attack to a record high 0.62 percent equity capital after first entering in January 2020 through Millennium International.

On the other, it reactivated short operations from Millennium Capital with 0.5 percent, after disappearing in February of last year, according to the records of the CNMV.

The positions have a charge against the shares of the gas company of 32.5 million euros and 26.2 million euros respectively. To these positions greater than 0.5 percent, the minimum required to declare shorts by the CNMV, it is necessary to add the 1.09 percent, 57.1 million, which has Covalis Capital since the end of October.

The Millennium and Covalis operations are carried out in charge of the exhaustion of the revaluation potential of Enagás for the next 12 months. Although the value is moving flat in the last 12 months, has already reached the average one-year target price.

The semi-annual results set the prudence of the consensus

The titles of the gas company move above 20 euros, so when the consensus shows an average price of 19.23 percent, the negative potential is already close to 5 percent, while the titles go up in the year more than 10 percent.

The market consensus opts for prudence since it released its half-year results in the summer. At that moment, Goldman Sachs, Rent 4 Bank, Caixabank BPI and RBC Capital chose to cut their recommendation on the value, according to records of Bloomberg.

After those reviews, the radiograph of the councils remains stable with the analysts who urge to “sell” the titles, 27.3 percent, outperforming those who choose to “buy”, 22.7 percent. A) Yes, most recommendations are to “keep”, 50 percent.

Benefits impacted by the new regulatory framework

The results of the company led by Antonio Llardén presented until September reflected a decrease in profit of almost 12 percent, to 307.3 million euros, despite the fact that the subsidiaries shot up their contribution by 38.8 percent in the interannual rate .

The reason for falling earnings, although it also improved in costs, It was produced by the regulatory reform of the energy market for the 2021-2026 period, which has been weighing on the sector’s profits since January.

Enagás reduced the cost of debt by 1.7 percent, with 80 percent of the debt at a fixed rate and almost 3,000 million euros in liquidity. Therefore, despite the decreases in earnings, it maintains the objective of raising shareholder remuneration by 1 percent for this year and sustained dividends until 2026. In addition, noted that there is no problem with the supply.

Profits fell 13 percent, also due to the regulatory impact that had an impact on earnings, the company explained. Despite this, Enagás maintains its goal of closing the year with a profit of 380 million euros.

Mixed response of experts to the new figures

While the semi-annual results elicited a negative assessment by the consensus, what was offered to the market in the accumulated of the first nine months left a mixed flavorTherefore, the positive evaluations were not enough to improve the recommendations and the potential of the company.

JB Capital he raised his advice to “neutral” and improved the target price by 5.7 percent to 18.50 euros. Societe Generale He increased it by 5 percent, to 20.90 euros, withdrawing the “buy” recommendation.

Instead, Sabadell Bank lowered its price for one year by 6 percent, to 21.98 euros and Exane BNP Paribas did the same, 5.2 percent, up to 19 euros. Recommendations to “buy” and “hold” respectively.

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