Bernstein sees profitability deterioration in Iberian renewables, cuts Acciona Energia, Grenergy, Ecoener

Corporacion Acciona Energias Renovables SA

24/04/2025 14:15

** Bernstein says profitability for Iberian renewables has deteriorated due to capex inflation, significant work in progress, higher opex, cost of capital increases and lower power prices

** It adds that asset rotation will be a way to avoid capital increases and reduce leverage instead of being a lever to boost capacity additions

** The broker prefers Portugal's EDP Renovaveis EDPR.LS, with "outperform" rating, as world's fourth-largest wind power producer is expected to announce strong measures to restore profitability, like cost-cutting and disposals of Ocean Winds

** It cuts Spain's Acciona Energia ANE.MC to "market perform" from "outperform" citing group's challenging asset-rotation plan, as it would have to sell more assets and cut even more future developments if exit prices are lower than anticipated

** It also downgrades Spanish Grenergy GREG.MC to "market perform" from "outperform" because of its limited valuation upside after a solid relative performance as the stock almost fully reflected positives of developing high return assets in Spain and Chile and rotation of part of those assets

** Spain's Ecoener ECNER.MC is also downgraded to "market perform" from "outperform" due to uncertainty on capacity delivery and potential measures required to strengthen the balance sheet

 (Reporting by Tiago Brandao)

 ((Tiago.Brandao@thomsonreuters.com;))