The confidence of the big investment banks in Iberdrola continues to grow. HSBC has raised its target price for electricity to 17.8 euros per share –from the previous 16 euros- and maintains its purchase recommendation. This price would mean a New historical maximum For Iberdrola, until now set at 16.01 euros on May 7.
In addition, with this new estimate, The company’s stock assessment is around 115,000 million eurosexceeding the joint value of all energy quoted in Spain.
The HSBC report, published after the presentation of results of the first quarter, values Iberdrola’s strategy very positively: a commitment determined by electrical and renewable networks in markets with high expansion potential. The firm also highlights the solidity of the group’s balance, its high box generation and its low exposure to risks such as tariffs in the US. Or the volatility of currencies and prices.
In fact, Iberdrola has confirmed that the new commercial environment will not affect its plans, since 80% of its purchases are made with local suppliers and 100% of the strategic contracts of construction projects are already closed.
More upward recommendations
HSBC has not been the only one to review its forecasts. Goldman Sachs It also raised its target price to 18 euros recently. The entity provides that between 2025 and 2028 Iberdrola will allocate about 70% of its Ebitda to reinvestments, focused mainly on electrical networks. According to its analysis, this will allow the company to grow in a sustained way, with an estimated increase of 7% per year in the benefit per share. By the end of the decade, approximately half of the group’s net benefit would come from the network business.
Goldman adds that Iberdrola is positioning himself in a «virtuous circle»: more investment, more benefits and greater dividends, with a solid base in key markets such as the US and United Kingdom. In addition, he anticipates that the company will quote in 2028 with a Per 13.7 times, below the historical average of its comparable ones.
These positive analyzes coincide with the good results of the first quarter, in which Iberdrola obtained a net profit of 2,004 million euros, 26% more than in the same period of the previous year. Following these figures, the company has improved its growth forecast for net profit for the year.
Other entities such as Alantra have also reviewed their estimates (up to 17.38â € ¯ €/action), Exane BNP (16.7â € ¯ €) and ODDO (16.5â € ¯ €), confirming the growing market optimism around the electric chaired by Ignacio Galán.