Axia initiated coverage with Buy recommendation and price target of €8.30. EDPR’s business model offers growth through the expansion of its installed capacity, focusing mainly in North America and specifically in the US, as the supportive policies for wind park developments are maintained and wind energy is becoming increasingly competitive vs. conventional energy.
BofAML adjusts its price target to €7.70 from €8.00 on model updates, while maintains its Buy recommendation. EPS was raised based on depreciation accounting changes. According to the broker, underlying changes are modest and growth to 2020 continue to be solid.
BBVA decreased price target from €8.00 to €7.72 based on a limited impact from the Spanish regulatory change. The broker believes EDPR’s growth profile remains attractive and maintains its Outperform recommendation.
Berenberg decreases its price target from €6.60 to €4.50 and downgrades its recommendation to Sell on the back of rising bond yields, namely analyst view on Portuguese bond yield, and uncertainty over US market. Price target revision also considers change in depreciation policy from 25 to 30 years.
BPI increased price target from €8.00 to €8.10 based on improved operational performance, lower financial cost on the back of USD depreciation and a lower US tax rate. The broker maintains its Neutral recommendation due to limited stock liquidity and questionable visibility post-2020.
Bryan Garnier maintains price target at €6.30 along with Neutral recommendation. The broker considers that caution is necessary given the current lack of visibility on the regulatory and fiscal environment in the US and the high volatility on the group's bottom line.
Caixa BI decreases EDPR´s price target to €7.10 from €7.60 and downgrades its recommendation to Neutral. The analyst believes EDPR´s investment case remains solid and unchanged with interesting growth options. However, it highlights that market’s liquidity has decreased significantly and company’s fundamentals has lost importance.
Citi maintains both Neutral recommendation and price target of €6.85. The broker believes that, despite offering robust growth pipeline compared to other renewables companies in Europe, the declining project IRRs and recent strong share price performance limit further material upside from these levels.
Deutsche Bank increases EDPR´s target price from €7.80 to €8.20 while maintains Buy recommendation on the view that EDPR’s shares are trading cheap along with the new targeted opportunities with offshore wind and solar pv ex-US.
Exane BNP increased price target from €6.8 to €8.0 with recommendation upgraded from Neutral to Overweight mainly due to the growth prospects, that appear robust with high visibility vs. the sector.
Goldman Sachs increased price target from €7.40 to €7.60 to reflect a new power price scenario of €46/MWh on average (vs. €43 previously on average).
Grupo CIMD decreased price target from €7.50 to €7.45 and maintains its Neutral recommendation. The broker updated its estimates based on EDPR’s operational numbers as well as regulatory changes in Europe and North America.
Haitong increased price target from €6.75 to €8.00 and upgraded its recommendation to Buy given the strong long term appeal of renewable assets backed on a combination of strong political support in most regions with improving economics (LCOEs are falling faster than expected), expected new asset rotation by EDPR or M&A in Iberia and the backstop created in EDPR shares after minority buyout attempt from EDP.
HSBC increases price target from €7.50 to €7.80 and maintains Buy recommendation as the firm believes the stock offers sector leading earnings growth underpinned by solid growth in the renewables sector, improved cash flow generation and solid valuation appeal looking at capacity or CF yield metrics.
JB Capital Markets updates EDPR’s valuation to 2018, adding the new UK offshore wind project and updating the exchange rates and remuneration in Poland. All things considered, price target remains at €8.0 and Neutral recommendation is unchanged.
JP Morgan increases price target from €6.70 to €7.80 after a model update to reflect quarterly results, while maintains Overweight recommendation as they see EDPR as the only proposition in Iberia that combines positive earnings momentum, limited regulatory risk and clear medium term growth prospects.
Kepler Cheuvreux maintains price target of €7.80 and Buy recommendation despite the passage of US tax reform mainly based on the value of the existing asset base. All in all, the broker believes that the impact of the new setup should be slightly positive.
Macquarie adjusts price target to €6.75 from €5.90 after the Portuguese stock market watchdog approved the offer for EDPR minorities. Recommendation remains unchanged at Neutral.
Morgan Stanley increases price target from €6.75 to €8.10 and maintains Equal-weight recommendation as, while they see strong value to EDPR and potential to trade towards their bull case of €10.50 (in line with renewables' M&A valuation), the firm believes limited liquidity and uncertainty around the EDPR target capital structure and future capex plan could be an overhang.
Natixis maintains Neutral recommendation and the price target of €6.90, following the presentation of the 2016 results, which were globally in line with the firm’s expectations at operating level, but missed expectations as regards net attributable profit. Price target obtained using the DCF valuation method.
Santander decreases price target from €7.8 to €7.7 maintaining Buy recommendation. The broker believes EDPR’s long-term outperformance is justified by its excellent assets, which are young, have above-standard load and availability factors and little exposure to merchant prices; moreover, it is in one of the few segments of the electricity business with growth prospects and it is not affected by the technological disruption; in addition its strategic plan looks reasonable and achievable.
Societe Generale upgrades price target from €7.15 to €7.40 and maintains Hold recommendation considering 9M17 results. While the firm recognize the attractive earnings growth, it believes the positives are priced in and some uncertainty persists in the sector.
UBS reiterates its Buy rating, owing to the dynamic value-accretive growth, the large, unwarranted discount to fair value and the scarcity value brought to the stock which is now a seemingly unique investment proposition in Europe. Its price target is unchanged at €8.00 and is derived from a DCF on existing asset base.