The doubts that the Gotham report cast on Grifols’ accounting and good governance a year ago permeated the minds of investors, who did not take long to sell positions due to the risk raised by the accusation by the North American analysis firm.
Only in that first session, Its shares plummeted almost 26%. Since then there have been better and worse moments, also conditioned in recent months by the threatened takeover bid launched by the Grifols family together with Brookfield to exclude it from the stock market, which temporarily boosted the share price. In any case, This year a third of the capitalization has been lost in its class A shares (those with voting rights) and 26% in class B (non-voting).
For the investor, after the many ups and downs of the stock during these 12 months, it is believed that the governance problems are resolved after the numerous changes in its Board of Directors, the arrival of the new CEO and the step back taken by the members of the founding family, is an option to take into account based on what analysts defend.
On average, the consensus of analysis houses that collects Bloomberg sets its target price at 15.5 euros for the next 12 months, which leaves it a potential of more than 60%one of the largest not only on the Ibex but on the entire Spanish stock market. Likewise, the vast majority of analysts, almost 70%, suggest that it is a good time to buy their shares, while only one in ten prefers to sell them.
“During this year, Grifols has made significant progress on three fronts: the business, balance sheet and Board of Directors,” Berenberg explains. “The profit is recovering and should set a new record in 2024, they have managed to meet the maturities that are now arriving with their latest issues and they have made many changes to their Board,” they add. “Despite all this, its shares are still well below the levels of a year ago and, therefore, we think it offers a great buying opportunity at these prices,” they conclude.
In this context, the profit that experts predict for this year (more than 315 million euros) is bought at only 10 times PER (times that the profit is included in the share price), something that has never happened before. beginning of a course, according to the data collected FactSet.
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