Although bank shares had the best performance last yeara recent report revealed that, since the current ruling party won the runoff, Utility companies were the second best performers among local papers, with an average return of 147% measured in dollars.
“In fact, six of the nine companies that make up the sector surpassed the gap mark”they assured from Delphos Investment.
Time to continue investing in the sector?
The consulting firm’s report maintains that There are possibilities to generate value in companies linked to public servicesespecially in Metrogas (METR) and Central Puerto (CEPU).
From IOL investonline They also agreed to place them in their portfolios for October. Of CEPU assured: “The company is well positioned to benefit from the growing demand for energy in Argentina and advances in energy infrastructure, which could translate into an improvement in their operating margins and their ability to generate long-term value.
And they expanded: “Although this quarter was greatly affected by the collection situation with Cammesa, which was reflected in its results presentation, We find it one of the most attractive companies in the sector given its recent acquisitions and its current valuation“.
Another chosen by IOL was Northern Gas Transport Company (TGN). “The company experienced a notable increase in its sales during the first half of 2024, reaching $131,002.9 million, which represents a growth of 33% compared to the same period of the previous year“.
This increase in revenue was due to both a 675% rate adjustment implemented in April 2024as well as the devaluation of the Argentine peso against the dollar, which favored the transportation of gas for export. “The tariff environment will continue to be a crucial factor for the stability and growth of TGN”they added.
For its part, in Investing in the Stock Market (IEB) They integrate the portfolio of recommendations with the “regulated” ones, within which you can see some public service providers such as: Transportadora de Gas del Norte, Metrogas, Central Puerto, Distribuidora de Gas del Centro, and Distribuidora De Gas Cuyana.
“With an inflation that continues to decelerate, the consecutive increases in rates and current company valuations They continue to demonstrate that it is a sector with an interesting upside potential.“, they closed.
Key data that will impact the Merval trend
For the long term, from IEB They maintain that the vision of “equity” Argentinean remains positive since they do not see fundamentals that could generate a change in the trend.
However, for the short and medium term, they stressed that the market will continue to monitor the agenda that the Government must carry out to achieve a lifting of exchange restrictions: governability, economic reactivation, accumulation of reserves, fiscal surplus and lower inflation.
Source: Ambito
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