Logista has already received her Christmas present. The company will become part of Ibex 35 from this Monday, the 19th, when the technical committee of the index decided at its last annual meeting to replace PharmaMar primarily based on volume and capitalization criteria. In 2022, the contract is 15% higher, while the value on the stock market is around 3,100 million euros.
Logista has already been profitable for its shareholders outside of Selective. This exercise resulted in a profit of 34% and the price reached an all-time high. Furthermore, it has majority support from analysts, with 93% giving buy recommendations and the remainder giving hold. Even with cumulative upside, this presents a potential upside of 10% against an average price target of EUR 25.78.
Being part of Ibex means greater visibility for the company and access to a portfolio of index-replicating funds, although Logista has generated market interest for some time with the progress of its business. Its fiscal year 2021-2022 results, which ended last September, included a consolidated net profit of ₹199 million, a figure that represents an increase of 14.3% and a new financial record. “It is in a good moment despite the weakening of the sector and the economic environment”, point out Bankinter, which maintains the Buy Council for various reasons: “an attractive dividend yield, the process of business diversification with the acquisition of new companies and the possible expansion of Logista Pharma (pharmaceutical distribution) and Nasdaq in France and Italy.
absolutely right, Barclays comments that the company forecast for EBITDA growth “above mid-digits”. [5%] it’s conservative in 2023 In addition to the expected growth in existing businesses, which we estimate to exceed 10%, considering the purchases of Transporte El Mosca and Carbo Colabatel. The British bank says, “The shares look cheap and offer a buying opportunity.”
With regard to the economic environment, with rising inflation and interest rates, Logista presents a good hedge in the analyst’s opinion. For example, Barclays calculates that a 10% increase in fuel price could mean a 1% increase in operating costs The sum, however, is well protected with a pass-through clause in the rates it charges its customers”.
plus dividends and shareholder interest
- resistance, The good results presented by Logista in its 2021-2002 fiscal year have been rewarding for shareholders, as it has decided to improve the distribution of dividends by 11.6%, keeping the payout above 90%. Last August the company paid 0.43 euros per title, to which it will add another 0.95 euros in the first quarter of 2023. The total outlay will be 183 million euros and will be the largest since the stock market relaunched in July of 2014. With the current price, it offers a coupon of 7%.
- stake, The company’s capital has seen movement in the month of December before jumping to Ibex. According to CNMV, Capital Income Builder Fund has increased its holding from 2.766% to 3.047%, while Capital Research and Management Company has increased it to 3.002% from the previous 2.88%. Imperial Brands, formerly Imperial Tobacco, remains the main shareholder with 50%.
Meanwhile, from Intermoney Valorous they emphasize that “despite the inflationary environment, Logista will be able to overcome the stress on final prices and its profitability will remain reasonably stable due to its high market share, with hardly any With competition, and its experience with a product like tobacco (70% of total sales) that for one reason or another (tax increases, new rates…) there is always an increase in price.
In favor of the interest rate, Cingular Bank comments that “it sees itself benefiting from growing against the cash pool [método de financiación entre empresas del mismos grupo] It is with Imperial Brands, the official interest rate of the European Central Bank with a structure of 0.75% ”. This means, as explained by César Sánchez-Grande, an analyst at Renta 4, that “For every percentage point that the price of money rises, it would add about 22 million euros to financial income, while maintaining average treasury holdings at 2,000 million euros (net cash at the end of 2022 was 2,600 million). (10% of the net profit of the previous financial year).
One of the dark spots that experts see about the company is its focus on the tobacco sector. In addition to the fact that smoking bans are on the rise, and there is a general growing trend toward less consumption, Europe is considering taxing electronic cigarettes and vapers.
