Bernstein raises Iberdrola stock price target to EUR14.50

Published 01/10/2025, 01:58 AM

In conclusion, Bernstein's analysts have revised their earnings per share (EPS) estimates for Iberdrola (BME:IBE), with an increase of 2.9% for the estimated 2024 and 8.1% for 2025, while reiterating their Market Perform rating and setting a new price target of EUR14.50. Trading at a P/E ratio of 13.79, the stock offers value relative to its growth potential. Notably, InvestingPro data reveals the company has maintained dividend payments for 45 consecutive years, demonstrating strong financial stability.

Trading at a P/E ratio of 13.79, the stock offers value relative to its growth potential. Notably, InvestingPro data reveals the company has maintained dividend payments for 45 consecutive years, demonstrating strong financial stability.

The company's capital expenditures (capex) have nearly doubled, growing from EUR 5.8 billion in the estimated figures for 2018 to EUR 11.7 billion in 2024. Alongside this investment, Iberdrola's network assets have significantly expanded, from a value of EUR 34.4 billion in 2018 to an estimated EUR 46.0 billion in 2024. This expansion includes an increase in renewable installed capacity from 29 gigawatts (GW) in 2018 to an expected 45GW by 2024.

In conclusion, Bernstein's analysts have revised their earnings per share (EPS) estimates for Iberdrola, with an increase of 2.9% for the estimated 2024 and 8.1% for 2025, while reiterating their Market Perform rating and setting a new price target of EUR14.50. Trading at a P/E ratio of 13.79, the stock offers value relative to its growth potential. Notably, InvestingPro data reveals the company has maintained dividend payments for 45 consecutive years, demonstrating strong financial stability.

The company's capital expenditure plan is expected to be continuously updated to meet new demand and accommodate the integration of renewables. Bernstein estimates a yearly capex of EUR 12.5 billion and forecasts an EBITDA increase of 4.1% and a net profit rise of 4.2% from the estimated 2024 to 2028.

In conclusion, Bernstein's analysts have revised their earnings per share (EPS) estimates for Iberdrola, with an increase of 2.9% for the estimated 2024 and 8.1% for 2025, while reiterating their Market Perform rating and setting a new price target of EUR14.50.

In other recent news, Iberdrola SA (OTC:IBDRY) is expected to reveal its third quarter and first nine months of the year earnings report, which, according to Citi's analysis, will be positively influenced by one-off benefits. These benefits, totaling approximately €100 million, are due to a legal case victory in Spain and will boost the performance of the Spain Generation, Supply and Renewables division. However, the company's earnings are still being impacted by ongoing losses from cable issues at its East Anglian offshore wind assets.

Citi has reiterated its Sell rating on Iberdrola, noting limited upside, despite these one-time gains. The firm anticipates that Iberdrola will maintain its full-year 2024 net income guidance, forecasting double-digit growth. This guidance includes the one-off legal case benefits, which could amount to nearly €360 million by the end of the first nine months, but it does not account for capital gains from asset rotation.

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