Bernstein downgrades Spain's Endesa as catalysts 'run out of steam'

Endesa SA

03/09/2025 11:12

** Bernstein downgrades Spanish utility Endesa ELE.MC to "market-perform" from "outperform" as key catalysts for network investment are now "running out of steam"

** The broker points to a disappointing regulatory draft on network remuneration, which casts doubt on the company's ability to increase capital expenditure and returns

** "We now see greater uncertainty regarding the company's ability to ramp up network capex (and) the additional €2.0-3.0bn boost in regulated assets by 2027e," Bernstein says

** As a result, it lowers Endesa's PT to 26.50 euros from 27.50 euros, as there is limited upside to the stock's 24% year-to-date gain, which outperformed peers

** It also trims its distribution EBITDA estimates by around 10% for 2025-2030

 (Reporting by Javi West Larrañaga)

 ((javier.west@thomsonreuters.com; +34 918 35 61 12))