Endesa just downgraded at Morgan Stanley, here’s why

Morgan Stanley downgraded Endesa to Underweight from Equal Weight with a price target of EUR 18.50, down from EUR 21. The analyst expects European utilities to outperform in 2024 given attractive valuations, continued operational-driven earnings upgrades, defensive attributes, policy support and sensitivity to rate moves. However, the firm downgraded the shares within its relative rating system.