Spanish energy giant Naturgy has seen its stock price plummet in 2024, losing a quarter of its value year-to-date and dropping below the 20 billion euro capitalisation mark. This sharp decline has caused concern among shareholders and investment funds.
Factors Behind the Slide
The downward trend began in late 2023 and accelerated after Naturgy's exclusion from the influential MSCI indices due to its low free float. Despite company optimism, the stock has continued to fall, making Naturgy one of the worst-performing Ibex stocks this year.
Anxiety Among Investors
Shareholders voiced their worries about the stock's performance at Naturgy's general meeting, noting significant losses compared to rivals like Endesa, Iberdrola, and Repsol. Key investment funds like IFM, CVC, and GIP, which entered Naturgy at higher prices, are also feeling the pressure despite past dividend gains.
Earnings vs. Market Perception
This market slump contrasts with Naturgy's strong financial results. Rising energy prices fuelled by the Ukraine conflict have significantly boosted profits. However, investors remain unconvinced, with only one out of 21 analysts on the Bloomberg panel favouring a 'buy' position.
