MS ups Redeia to 'overweight' after shares drop 15% YTD

Redeia Corporacion SA

03/09/2025 09:48

** Morgan Stanley upgrades Redeia REDE.MC to "overweight" from "equal-weight," saying the regulatory and blackout-related risks are well priced in after shares dropped 15% YTD

** MS also sees an earnings inflection point for the Spanish electricity grid operator this year, citing regulatory asset base picking up and improved regulation

** "We see funding of Redeia's rising capex as largely de risked thanks to the recent Hispasat disposal and capex subsidies," it adds

** The broker also says Redeia has room for manoeuvre with options of further hybrid issuance, new disposals or operating on a lower credit rating

** Out of 22 analysts that cover Redeia, 10 rate the stock "strong buy" or "buy", 10 rate it "hold" and two​ rate it "strong sell" or "sell" - LSEG data

 (Reporting by Tiago Brandao)

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