Morgan Stanley: The analyst team provides an overview of its model for energy demand, prices and GDP evolution. Gas and power curves have normalised in the short term, and imply prices aligned with the team’s estimates. They see less downside risk in these prices and, therefore, less risk of downward EPS revisions, especially attractive for companies trading at low multiples.
On the other hand, Rob Pulleyn reiterates the data centre theme as one of the main risks to higher energy prices. The preference in the sector remains on ENEL, Engie, SSE and RWE.
As for Spanish companies, EW remains on Iberdrola and Naturgy, Solaria, Acciona and Redeia and UW on Endesa and Enagas.
