The British bank HSBC improved its recommendation on the shares of Endesa to maintain buy, and raised its price target from 21.60 to 24.20 euros. Knowing that the electricity company is currently trading at almost 19.40 euros, this valuation – which is the fourth highest among the 23 analysis houses that follow the company – implies an upside potential of 24%. HSBC has been providing Endesa with uninterrupted maintenance since at least March 2023 (the earliest date from which Bloomberg offers data).
Bernstein and CaixaBank also updated their price recommendations and targets for the utilities this Wednesday, but they did not make any changes: they reiterated the purchasing advice that they had already issued and maintained their previous valuations (Bernstein sees it at 24 euros and Caixa at 11:30 p.m.).
Like the vast majority of Ibex 35 companies, Endesa suffered a striking stock market fall on November 6, when almost all members of the index experienced a correction after the announcement of Donald Trump’s victory in the US elections: The electricity company fell 3.6% this Wednesdayin which the Ibex 35 fell by 2.90%. This was not one of the most bearish quotes of this session. Since then, it has recovered 1.25% and, for the year as a whole, it is up 5.7%. It is trading at just 3% of its annual maximum, which reached the 19.99 euro mark in September. And it has not reached the psychological barrier of 20 euros since September 2023.
At the end of October, Endesa presented results for the first nine months above estimates, increasing its profit by 33% until September, to 1,404 million euros.
The average number of analysts collected by Bloomberg gives the company an average price target of 21.92 euros, up to which the company has a journey of 13%. Ahead of HSBC, the houses most optimistic about the company’s potential are Oddo BHF (which sees it trading up 30.4%, to 25.30 euros), Alantra Equities (the place at 25.19 euros, 30% more) and JB Capital Markets (which values at 24.70 euros, with a potential of 27%).
