Wednesday, December 8

Repsol, Iberdrola, Telefónica, IAG and the credibility of the Fed

“We are increasing the weight in the portfolio at Repsol”, confirms the investment director of Imantia, Francisco Sainz. “Fundamentally because we see him travel.”

The shares posted losses after the results, but gained more than 25 percent in the accumulated of the year. “If you look at the price compared to the one before Covid 19, there is a 10-15 percent rise left to recover, and crude oil and the economic cycle are already at pre-COVID levels,” explains Sainz.

Repsol’s appeal also comes from its fundamentals, as results “continue to improve.” “Also in refining margins, and it is very interesting that at a strategic level the company gives more weight to renewables,” says Imantia’s investment director.

In October, Repsol celebrated its Low Carbon Day, in which it gave more details about how the company’s transition to green energy will be.

“Corporate governance is very committed, and we believe in that plan,” says Sainz. “It is linked to shareholder remuneration, with higher dividend yield, higher treasury stock. The PER of 2022 may be below 7 times ”, he argues, for which he reiterates that stocks“ may have a path in our portfolio ”.

What if oil fell?

As for when to sell, Sainz assures that his task is to look for values ​​”better than the index”, but that they do not work with exit levels.

“What we do is review the evolution of oil prices and margins, but we do not set target price levels,” he explains.

Regarding the voices that suggest that oil, after its upward climb of the year, could fall below $ 75, Sainz affirms that then it would be necessary to see “the reason for the fall” and the evolution of Repsol to date.

Episode credits

  • Direction: Ismael García Villarejo
  • Production: José Jiménez
  • Realization: Covadonga Lacruz
  • Recorded in Madrid on November 11, 2021

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