There is life outside the Ibex. Between the continuous market and BME Growth, the Spanish Stock Market offers up to 180 investment possibilities. The analysis firm Intermoney points out that investment in small listed companies “presents greater opportunities” than the large whales on the Stock Market, and points to five Spanish stocks with potential. These are spread across several leading sectors and are characterized by being “hidden” values, with great growth potential, a strong family component, and benefiting from deglobalization or lower interest rates, among other factors. In addition, they are exposed to what the firm calls “megatrends”: the electric vehicle, health, cybersecurity, defense and, of course, artificial intelligence.
Wallbox: the potential of the electric vehicle
Intermoney analysts point out that, whether they like it or not, manufacturers and consumers are going to have to adapt to the electric car: by 2035, combustion cars will no longer be able to be purchased, and by 2030, they advance, more than 50% of the vehicles sold They will be electric. The launch of electrification cannot be done without the necessary infrastructure and, very specifically, without chargers. For this reason, Intermoney points to Wallbox, the manufacturer of chargers and energy managers. Among its strengths, they point out its status as a world leader (it has a presence in 118 countries) and a pioneer in bidirectional charging systems, which allow optimization of energy management. On the other hand, less market dynamism, the presence of competitors and their financing problems threaten the value. The report gives a target price of three dollars (unlike the rest of the recommendations, it is listed in the United States), more than double what it is trading now, but warns that they do not expect positive cash generation until 2027. So far year, the stock is down more than 11%.
Baviera Clinic: the business of aging (and poor eyesight)
2.1 billion people will be over 60 years old in 2050, compared to 901 million in 2015. Added to the aging of the population is the widespread use of screens, which aims to generate a good number of clients for ophthalmology clinics. Intermoney points out, in these circumstances, the Baviera Clinic as one of the great beneficiaries. The family company, specialized in the diagnosis, treatment and monitoring of visual problems, has a “good positioning of its clinics” (71 in Spain alone, 28 in Germany and 8 in Italy), a “healthy” balance sheet and an experience that endorses them. For this reason, the manager’s analysts point to a target price of 34 euros, a potential of 20% on its price this Wednesday. Since January, it has risen 18%.
Facephi: the importance of cybersecurity
The wave of cyber attacks suffered by several Spanish companies and institutions in recent weeks shows the importance of cybersecurity in a digitalized world. And it highlights companies that know how to capitalize on it: for Intermoney, Facephi is the value that can take advantage of this megatrend. The technology company based in Alicante with offices in South Korea, Uruguay and the United Kingdom, specializes in identity verification software through biometric data. In three years, it has quadrupled its turnover and has large clients, such as Santander or HSBC. The company has high levels of debt, which entails expansion risk, analysts say. Therefore, it keeps the value at “hold”, for when a window opens to enter. Its target price, according to the report, is 1.7 euros, 12.37% below its price this Thursday. Although it is up 477% over the last five years, so far in 2024, the stock is down 10%.
Nicolás Correa: the rearmament of Europe
The bellicose rhetoric that Europe has adopted (reiterated in recent weeks, on the occasion of the elections to the European Parliament) leads analysts to predict a “considerable” increase in defense spending. NATO members are already working on it: their commitment is to reach 2% of GDP, which would mean an increase compared to current spending of more than 8%. In this context, the manager recommends Nicolás Correa, the group founded in 1947 and specialized in milling machines and capital goods for the industry. The company closed 2023 with a record order book of 108 million, has good cash capacity (growing 12% annually in the last decade) and investment capacity. A threat, however, hovers over its business: the slowdown in China, its largest market (20%). From Intermoney, they recommend the purchase of its shares, to which they give a target price of 13 euros, almost double the current market. So far this year, the value marks a timid advance (0.46%).
Catenon: the wave of artificial intelligence
A brief look at the performance of the S&P 500 shows the investment potential that artificial intelligence holds. Nvidia, the champion of this wave, is worth more than the entire German stock market combined. But the recommendation of the manager’s analysts is not for the manufacture of chips or the development of generative artificial intelligence, but for human resources: “AI is going to cause a restructuring of the labor market,” they point out in their report, where highlight the need for technological profiles. For this reason, they recommend the purchase of Catenon, a human resources technology multinational. They have a good financial situation, a unique remote recruiting model and a global presence. On the downside, they compete in a market with many players and are susceptible to being limited by new regulations. Intermoney recommends its purchase and assigns it a target price of 1.85 euros, a growth potential of more than 80%. It advances 10% so far this year.
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