BPI/CaixaBank list puts Navigator shares among the favorites for 2022

  • ECO News
  • 24 January 2022

In a year marked by inflation and central banks, BPI/CaixaBank places Navigator among its favourites. It anticipates good results and a generous dividend despite rising energy costs.

Navigator is on BPI/Caixa Bank’s “core list” for this year which will be marked by inflation and the fact the central banks in developed economies started to unwind post-pandemic stimulus. The paper company is not immune to the pressure of rising costs, especially those related to energy. But it has already hiked the paper price on several occasions in recent weeks and this will allow it to post the second-best pre-tax and interest result in its history and continue to deliver generous dividends to shareholders, according to analysts.

“Despite upward pressure on costs, particularly energy costs, rising UWF paper prices should allow Navigator to deliver the second highest EBITDA in its history in 2022,” says the Portuguese-Spanish investment bank in a research note sent to clients this Monday.

“The attractive dividend story is intact with more €150 million in dividend distributed in 2021 (yield of 6%), which we expect to be maintained,” the analysts add.

Navigator, to which the bank has assigned a target price of €4.50, attributing a potential upside of 34% from Friday’s share price and a buy recommendation, is the only Portuguese company among BPI/CaixaBank’s favourites for this year in the Iberian market. There are seven more: Amadeus, BBVA, Cellnex, Iberdrola, Inditex, Merlin Properties and Sacyr.