One of the best values of October in the Continuous Market is the story of an entire resurrection in just one month. And it is that Vidrala, the glass company that is listed there, had starred in a progressive downward path from its best levels of the year reached at the beginning of the year higher than 32% until the minimum collected on October 11.
A descent carried out by several factors that had been penalized by several factors. Among them the high price of gas, necessary for the manufacture of glass containers, which had been exponentially raising its costs and that had been reflected in their accounts for the first half of the year.
The straw that broke the camel’s back was the blow caused by Citi on October 11, which drastically cut both its recommendation and its course and was clearly reflected in its price: with PO of 45 euros from the previous 70well below its current price and with a sell advice from hold. The value thus culminated four sessions down, with an accumulated 7.3% that left it at a 2022 low.
But after that there have only been two downward sessions in October, so the upward trend in that period reaches higher levels than in the entire last month, 31%, compared to gains of 29% in the whole month. This is what we can see in its price chart where we see how, despite yesterday’s falls, the value has followed a high progression of improvement since last October 12, surpassing minimums and reducing its annual falls, which, however, still exceed double digits to 11.27%.
Beyond that, he has just presented results that demonstrate the effect and impact of energy on his accounts. Until September earn 37.4% less to 78.2 million euroswhile the fall of its Ebitdaof its gross operating profit is almost 30% up to 159 million euros.
Regarding its prospects, the truth is that the company highlights that, despite the temporary deterioration that has occurred in its margins in the third quarter of the year, they will recover in the fourth quarter due to two factors: the selling prices of the products will rise and by actions implemented to reduce energy costs.
From a technical point of view, the technical indicators prepared by Investment Strategies show us that the value has improved, with its great rebound, by two points, therefore, the total score it reaches is 4 out of 10 possible points. In positive we find the trend in the medium term and the volume of business, both in the medium and long term, which is growing for the value.
On the other side, we see that the long-term trend of Vidrala shares remains bearish, with a total moment, both slow and fast, that is negative for the value and the volatility or amplitude range that keeps growing in the medium and long term.
As for the analysts, after the impact of Citi, from Renta4 they offer, after the accounts, Hold recommendation and target price of 72.1 euros, which is clearly behindeven with downside potential from their current listed prices. Nothing to do with the 84 euros of PO that Berenberg shows, but down from the previous 91 for value, in which the margin for improvement already exceeds 10%.
reference: www.estrategiasdeinversion.com