Indra Rises as the Protagonist of the Ibex 35 at the Start of the Year

One of the main protagonists of the Ibex-35 at the start of the year is Indra. The company chaired by Marc Murtra has become the most bullish firm on the Spanish selective, accumulating a rise of more than 8.5% and reaching historical highs corrected by dividends and increases.

This rise in the stock market has been accompanied by several positive opinions issued by analysts, who applaud Indra’s commitment to the defense sector and point to the presentation of its new strategic plan in March as a key moment for the company.

One of the latest analysis houses that have recently revised their recommendation on Indra has been UBS, which has recently published a report in which it recommends acquiring its shares and has raised its valuation from 15 to 16.4 euros per share.

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Indra to become a defense company

From the Swiss bank they pointed out that it is possible that Indra’s new strategic plan “focuses on the defense area and could potentially include the sale of non-strategic areas with low margins or a potential spin-off of Minsait.” In this way, they believe that “the greater focus on defense and security of the EU and its allies has brought an increase in defense spending, which generates a positive environment for Indra’s growth.”

Another entity that has expressed itself along this same line in 2024 is Bank of America, which last week issued a report in which it set its target price at 21.5 euros per share, 40% above the current level.

“Indra is taking the first steps to become primarily an aerospace and defense company, which we believe will support margin expansion, stronger free cash flow and multiple expansion,” explains the document prepared by the defense analyst of the North American bank. Likewise, the bank believes that the repositioning of its portfolio will be “one of the key issues of the CMD, since Indra has the objective of becoming the national defense champion in Spain.”

Of the 21 analysts who follow the company according to the Bloomberg consensus, 13 recommend buying its securities, 6 keep them and only 2 advise undoing positions. Furthermore, despite accumulating a rise of 43% in the last 12 months, the consensus gives it a rise of more than 7% to 16.43 euros per share.

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(Featured image by geralt via Pixabay)

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First published in EL INDEPENDIENTE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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