For UBS there are several factors that can enhance the improvement of Iberdrola in the market. Among them, the improvement of its benefit per action, since the Switzerland is waiting for an annual growth of 9% in profits per action (EPS) until 2028, promoted by an annual investment of 14 billion euros in CAPEX, its capital expenses.
It also highlights its constant performance. They point out that, despite the energy crisis, covid and macroeconomic volatility, Iberdrola has maintained constant growth in its profits during the last decade.
Another of the company’s strengths for UBS is its diversification: the geographical and technological diversification of Iberdrola limits the impact of external factors such as regulatory reviews or energy prices.
Regarding the growth strategy, they highlight their organic growth based on innovation and prudent acquisitions, which have given As a result a total annual return for 20% shareholders in the last 10 years.
Regarding their perspectives, from UBS they emphasize that they wait to two orientation updates this year, which could be powerful catalysts for improvements in consensus. At the moment the Swiss bank reiterates its «buy» rating for Iberdrola with an objective price of 15.30 euros, highlighting its ability to maintain constant growth and its position as leader in the profits sector in Europe.
They also point out that Iberdrola could invest additional 1.5 billion euros without exceeding a 3.5X net/ebitda debt ratio.
As for future estimates, from UBS they expect that Its income reaches a figure of 51. 509 million euros in 2028. On the other hand, EBIT projections, for that year, that is, benefits Price to interest and taxes reach 13,501 million euros.
Meanwhile, from UBS they point out that the action does not reflect its expected growth rates, which make Iberdrola a European champions. In addition, the actions seem cheap in front of US public services companies.