< The 2014 All-Europe Research Team
Ana Munera Jimenez guides BBVA to its best showing since 2006, leading her Madrid-based squad of 12 analysts up two rungs to second place. The researchers follow 87 companies, an increase of 60 percent since 2011, earning commendation for their “excellent on-the-ground knowledge of Spain and responsiveness to requests for more detailed information,” in the words of one investor, who cites in particular their banking coverage. They are urging clients to buy Lisbon’s Galp Energia, an integrated oil and gas company with a fast-growing exploration business, especially in Angola, Brazil and Mozambique. Management is upgrading the refinery and marketing business — Galp operates approximately 1,500 service stations on the Iberian peninsula and in Africa — and the company is benefiting from increasing demand and European competitors’ plant closures, the team believes. In addition, rising need for liquefied natural gas in Asia together with LNG price hikes are bolstering Galp’s gas and power segment, which provides stability and adds to management’s ability to finance growth. The analysts are projecting a 22 percent compound annual growth rate through 2016. Meanwhile, reports Munera, the stock is underappreciated and the current value — it was trading at €11.91 at year-end 2013 — offers an attractive entry point. Rated outperform, the stock’s target price is €19. |