Iberdrola, the Utilities sector company, was revisited by a Wall Street analyst yesterday. Analyst Robert Pulleyn from Morgan Stanley maintained a Hold rating on the stock and has a €17.00 price target.
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Robert Pulleyn has given his Hold rating due to a combination of factors influencing Iberdrola’s financial outlook. The company’s guidance for 2028 adjusted net profit is approximately €7.6 billion, which suggests an 8% compound annual growth rate over the period from 2024 to 2028. This projection is slightly above the Bloomberg consensus and Morgan Stanley’s own estimate, indicating a modest upgrade of 1.5-2% to consensus expectations.
Despite these positive projections, the company’s EBITDA guidance of around €18.0 billion for 2028 is below consensus, potentially due to lower contributions from liberalized activities. This creates a cautious outlook, as the positive net income surprise is largely attributed to factors below the EBITDA line, such as recent acquisitions and accounting adjustments. Additionally, while the dividend per share is in line with consensus expectations, the overall financial results suggest limited immediate upside potential, justifying the Hold rating.
In another report released today, Deutsche Bank also maintained a Hold rating on the stock with a €14.50 price target.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is neutral on the stock.