The steel giant ArcelorMittal (ES:MTS) and pharmaceutical company Almirall (ES:ALM) are good options for investors looking to invest in the Spanish market. These stocks have received Buy ratings from analysts who also see a potential upside in their share prices.
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Let’s have a look at them in detail.
ArcelorMittal
ArcelorMittal is the leading steel manufacturing company, with a presence in around 16 countries. The company supplies steel to various industries, such as automotive, construction, energy, packaging, transport, mining, and more.
In February, the company reported its 2022 annual results, where its total sales increased to $79.8 billion for the full year from $76.5 billion in 2021. The net income was down to $10.6 billion from $14.9 billion in the previous year. The company also reduced its net debt to $2.2 billion in 2022, as compared to $4.0 billion in 2021.
Moving into 2023, the company expects its steel shipments to increase by 5% as compared to 2022. It expects its capex to increase between $4.5 and $5 billion in 2023, along with positive free cash flow generation.
Following its results, analysts have shown their confidence in the stock and have confirmed their ratings again.
ArcelorMittal Stock Price Target
MTS stock has a Moderate Buy rating, based on a total of eight recommendations. The average target price is €34.23, suggesting a change of 19% on the current price.
Almirall, S.A.
Amirall is a pharmaceutical company based in Spain with a focus on treating a broad range of skin diseases.
In its annual results for 2022, the company posted an increase of 6.6% to €863.2 million, meeting its guidance numbers. The higher sales were driven by improved performance in Germany and new launches like Klisyri® and Wynzora® in Europe. The earnings during the period decreased by more than 15% on a year-over-year basis due to higher R&D and other expenses.
For 2023, the company is targeting a net sales growth of low-mid single digits and an EBITDA of €165-€180 million. Analysts remain bullish on the company’s upcoming pipeline of drugs, including Lebrikizumab, which is expected to launch in late 2023.
ALM Share Price Target
According to TipRanks’ analyst consensus, ALM stock has a Strong Buy rating. The rating is based on four Buy, and one Hold recommendations.
The average price forecast is €12.86, which implies a 45.5% upside on the current price.
Conclusion
Both MTS and ALM have reported their 2022 annual results, which has resulted in them gaining more confidence from analysts.
ArcelorMittal is looking ahead to higher steel production in 2023 as global steel demand is expected to recover.
As for Almirall, the upcoming drug pipeline looks exciting, along with its strong numbers in Germany and Europe for the existing portfolio.
