Higher inflation, the slump in global economic prospects, and supply disruptions due to the Russia-Ukraine war have impacted the economy of Spain in 2022 and are likely to continue in 2023. Its benchmark index, the IBEX 35, is trading down by 5.23% YTD.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
On the plus side, the recovery in tourism and the government’s efforts to ease inflation are keeping hope alive for investors.
As they say, ‘crisis breeds opportunity,’ this is also a perfect time to invest in quality stocks in Spain to safeguard your portfolio. Tracking the analysts and the stocks they are bullish on is surely a safer way to invest your money.
Based on this backdrop, we have shortlisted two Spanish stocks, oil and gas company Repsol (ES:REP) and travel technology company Amadeus IT Group SA (ES:AMS), that have ‘Strong Buy’ ratings from analysts.
Let’s find out some details on these stocks.
Repsol
Repsol is a global energy company with a market in 100 countries worldwide. The company is on a path to adopting a sustainable energy model for better efficiency in all its operations. The company’s continuous efforts towards cleaner energy open the door for many growth-oriented sectors, such as electric mobility.
The company really impressed its shareholders with its third-quarter results for 2022, announced in October. It announced an 11% increase in dividends to €.70 per share for 2023. Repsol has a dividend yield of 3.62%. The company also implemented a share buyback program to acquire up to 36 million shares.
Is Repsol Stock a Buy?
Repsol stock has given a solid return of almost 50% in the last year. Despite this, analysts remain confident in the stock. The stock enjoys a Buy rating from eight analysts, and most of them have recently reiterated their ratings on the stock.
The analysts still believe that the stock has scope for further growth. The average REP target price of €17.92 shows an upside of 25% from the current price level.
Overall, Repsol stock has a Strong Buy rating as per TipRanks’ rating consensus.
Amadeus IT Group S.A
Amadeus IT Group is a technology solutions company that provides its services to the travel and tourism industries.
The company’s stock has yet to fully recover from the fallout after the spread of the COVID-19 pandemic. The stock has lost almost 30% of its value in the last three years.
Moving on to the results, the third quarter numbers clearly show the company’s recovery progress. The group’s revenue was €1.2 billion in the third quarter, which is around 86% of the revenues in the third quarter of 2019. Earnings also touched almost 80% of pre-pandemic numbers.
Looking at the promising figures, the company has announced it will resume its shareholder returns in 2023.
Amadeus Share Price Forecast
Amadeus stock has a Strong Buy rating on TipRanks, with three Buy and one Hold recommendation.
The AMS average target price is €63.88, which shows a change of 22.3% from the current price level. The target price has a high forecast of €70 and a low forecast of €52.
Last week, Ben Andrews from Goldman Sachs upgraded his rating from Neutral to Buy on Amadeus. His target price is €70, which has an upside potential of 34%.
Conclusion
Analysts are bullish on these two stocks and anticipate a significant increase in share prices.
Repsol is already delivering a great return for its shareholders with higher dividends and buybacks. Amadeus, on the other hand, is on track to achieve full recovery in its business and reward its shareholders again in 2023.
