Archive for the ‘stock price’ Category
How does the stock price development 2011
RBS analysts have not changed their advice on Scamander (maintained with target price at 8.20 euros) after analyzing the figures that the bank filed last week that led them to reduce its earnings per share by 1% for this year and next.
“Scamander’s net profit reflects the weakness of the figures of the company in Spain and high financing costs assuming offset by gains in emerging markets,” say these experts. From RBS seen some slowdown in revenues from Mexico, the United Kingdom and the United States, offset, however, by lower financing costs for those businesses. However, these analysts still see that funding, in general, will remain face as concerns persist about the quality of assets in Spain.
This last argument, the deteriorating quality of assets in Spain, is directly related to late payments, on which RBS warns: “The delinquency rate has reached Scamander in the fourth quarter of 2010 compared to 3.6% 3.02% the previous year and, in the case of late payment in Spain, is increased to 4.2%. In addition, the ratio of coverage in Spain has deteriorated to 58% from 73% at the end of 2009. This is not a surprise, but the constant risk of real estate and construction sector remains strong. With asset prices falling in Spain, we see high default costs in the medium term, slowing the growth of group revenues.