JP Morgan improves its recommendations on Mapfre and Iberdrola
Iberdrola and Mapfre have benefited from the latest adjustment in the stock market recommendations by JP Morgan. On the one hand, the US firm raises the target price of the power company chaired by José Ignacio Sánchez Galán by 3.36% to 11.40 euros per share from the previous 11. This way, Iberdrola obtains an upside potential of just 1.15%.
For its part, the Reuters board of analysts gave it a potential of 3.19% after placing the target price on the company at 11.63 euros, above the current price of its shares: 11.27 euros. Of the 30 analyst firms that track the stock, 14 recommend buying; 15, keep and 1, sell.
Furthermore, this large Spanish energy group is focusing on green hydrogen as its new growth opportunity with consequent support for the creation of new electrolyzer manufacturers. It has also been proposed to accompany the growth of its profit with the growth of its dividend with a floor of € 0.40 / share during the next two years and € 0.44 / share between 2023 and 2025.
María Mira, fundamental analyst of Investment Strategies, explains that “in a valuation by multiples over the estimate of 2021 results, the market discounts a PER of 18.5v for Iberdrola (vs 38v on average among its competitors), also moderation in the ratio PCF (7.5v) and EV / EBITDA controlled, at 9.8v and the market pays 1.78v its book value, compared to a multiple of the average book value for its peers higher than 4v. The yield on dividend-Yield is nothing negligible, 3.6% “.
As for the multinational insurance company, JP Morgan has gone from underweight Mapfre, with a price target of 1.70 euros, to overweight the value up to 1.96 euros per share, that is, an increase in the target price of 15.29%. The upside potential obtained by Mapfre is 8.28%, taking into account that the current price is 1.81 euros per share.
However, from Reuters the potential for Mapfre, although still positive, is reduced to 4.95%, almost half compared to that granted by JP Morgan. Reuters analysts put the insurance company’s target price at 1.91 euros per share. In addition, of the 13 analysis houses that follow the value, 7 advise to buy; 4, keep and 2, sell.
Mapfre was this morning among the leaders of the Ibex 35 revaluation table with a rise of 2.74% in the early hours, second only to ArcelorMittal. In addition, according to the premium indicators of Investment Strategies, Mapfre obtains a score of 9.5 out of 10 possible points. All its technical aspects are shown in positive, that is, trend, moment and volume, as well as the volatility in the medium term, measured according to the amplitude range. In red, long-term increasing volatility, interpreted in reverse.
Mapfre premium analysis
If you want to know the most bullish values of the stock market, register for free in Investment Strategies.