The arrival of Ángel Escribano as the new president of Indra strengthens its position as a strategic partner in the Defense sector. Uncertainty surrounds Telefónica as the market assesses whether Marc Murtra will manage to restore its lost shine. This move has generated a new balance of power between Telefónica, with 10% in the hands of the Government, and Indra, with 28%, which could influence their future strategies.
Escribano's appointment has given Indra immediate prominence in the markets, while Telefónica has experienced a 3% drop in its shares, making it the biggest decliner in the Ibex 35. Shares of the company hit March lows, trading at 3.858 euros per share, with an intraday decline of 4.28%. Unlike Telefónica, the European Stoxx Europe 600 Telecommunications index has seen a slight advance, leaving the Spanish company lagging behind its international competitors.
The change in the presidency of Telefónica has marked a turning point in the Spanish stock market, with Indra seeing an increase of over 3.5%. Marc Murtra's appointment poses new strategic challenges for the company, after José María Álvarez-Pallete stepped down at the behest of the Government, which chose Murtra as his successor and former leader of Indra.
The impact of this change has been immediate in the markets, with BNP Paribas giving Telefónica a target price of 3.2 euros, anticipating a possible further decline of 10%. On the other hand, Santander is optimistic with a target of 4.5 euros, and Mediobanca values the company at 4.45 euros. This move also affects government control in both companies and poses challenges for maintaining cohesion in a board of directors with diverse interests.
Marc Murtra will face tough price competition in the Spanish telecommunications market and will seek to regain the company's stock appeal, which has fallen out of the top ten of the Ibex 35 by market capitalization. Investment banks have adjusted their recommendations, with CaixaBank lowering its target price from 4.3 to 4.15 euros, maintaining a neutral stance.
