CdM | On Tuesday, Berenberg experts raised their assessment of Iberdrola (IBE) to €17.50 per share from the previous €14 per share, and reiterated their recommendation to “hold” the stock in the portfolio.
According to their latest report on the energy group, ‘by December, Iberdrola will have high visibility on remuneration in key geographies for its Networks business, at a time when global energy networks require an unprecedented level of investment over several years’.
‘Consequently,’ they add, ‘its decision to increase planned investment in networks not only seizes the opportunity to ensure relatively stable growth from its already substantial base of regulated assets, but also demonstrates the advantages of its scope and diversification.’
According to these analysts, ‘there are numerous reasons to view Iberdrola’s solid growth track record positively.’
However, they are not raising their “hold” recommendation, as they consider that their assessment of €17.50, which implies an upside potential of 8% on the current market price, is not sufficient to justify a “buy” recommendation.
