Bernstein cuts Redeia to 'market-perform' on high WIP

Redeia Corporacion SA

22/09/2025 10:52

** Bernstein downgrades Spanish electricity grid operator Redeia REDE.MC to "market-perform" from "outperform," citing higher Work in Progress (WIP) and project approval delays

** The broker points out that work in progress is much higher than expected and adds it is poorly remunerated until assets are commissioned, which can take 5-7 years

** This prompts a cut to broker's forecasts for the firm's regulated asset base, earnings, and cash flows

** Due to delays in approval processes, it estimates Redeia will execute only about 75% of the government's announced capital expenditure plan

** Bernstein also sees challenging any dividend per share growth as funding the capex plan may require 1.5 billion euro in new hybrids, negatively impacting adjusted EPS and FFO

** Out of 22 analysts that cover Redeia, nine rate the stock "strong buy" or "buy,"​ 11 "hold" and two​ rate the stock "strong sell" or "sell" - LSEG data

 (Reporting by Marta Serafinko in GdanskMarta.Serafinko@thomsonreuters.com; +48 58 769 66 00;)

 ((Marta.Serafinko@thomsonreuters.com; +48 58 769 66 00;))