In the coming months, another Spanish company could reach 100 billion euros in market value. Above this figure, Goldman Sachs estimates the value of Iberdrola on the stock market, setting a price target for its shares at 16 euros.
This is currently the highest valuation received by the company chaired by Ignacio Galán and gives it, based on current prices, a revaluation potential of 16% for the following months. If this price objective is reached, Iberdrola’s capitalization could even reach 102 billion euros. After reaching new historic highs on the stock market this Tuesday at 13.91 euros (increasingly closer to 14 euros), the market value of the electrical company has exceeded 88.5 billion euros.
“Despite solid results and a valuation above that of the sector, we believe that Iberdrola could continue to beat his counterparts“, support Goldman Sachs. They justify their opinion by stating that Iberdrola has “double-digit upside potential on consensus EPS, its growth compounded by electrification until the end of the decade (+6% rate annual compound EPS even despite the normalization of electricity prices) and its defensive economic model. “Similarly, they support its price increase target (the previous one was 15 euros) to reflect this upside potential derived from the purchase of the British distributor ENW and a slight reduction in the cost of capital.
While expert consensus believes that Iberdrola’s profits will be extraordinary this year thanks to the sale of assets in Mexico and will normalize in the coming years, the Goldman Sachs analysis team considers the synergies that could be produce with ENW and Avangrid operations. sees the profits of the largest electricity company in the Spanish market increase in the coming years and nearly 6.5 billion euros in 2027.
Besides Goldman Sachs, only three other analyst banks estimate Iberdrola’s valuations above 15 euros per share: HSBC (15 euros), Oddo (15.30 euros) and Morgan Stanley (15.50 euros). These price targets exceed the current average analyst consensus collected Bloomberg at the level of 13.62 euros at which the company would currently be trading without potential. Iberdrola’s increase over the year is 16%.
