Politics will not be a problem for utilities in Spain. At least, according to the latest report from Bank of America. The experts of the American entity take a look at the listed companies in the sector, whichThey should benefit from this minimization of political risk to their business.
"Iberdrola and Endesa assured in a reassuring tone that the government's political action has been diluted in the sector," explain the bank's analysts.
"We see this as something especially relevant for Endesa, a company from which we reiterate our advice to 'buy' after recently underperforming the market due to concerns about the CO2 tax," they add below. "EDP has also convinced us" with their speech, they acknowledge.
"Meanwhile, Red Eléctrica has reiterated that the sale of its minority stake in the fiber optic business ed Reintel may materialize in the coming months," they add. "And Naturgy has stated that it is imminently awaiting a decision from the regulatory body on IFM's takeover bid."
When talking about recommendations and target prices, BofA dedicates a 'buy' advice to EDP ', with a price of 7.15 euros per share. In the case of Enagás, the bank gives it a price target of € 14 and an 'underweight' recommendation.
Endesa's price places it at 25.3 euros per share with a 'buy' advice. That of Iberdrola, at 12.15 euros, accompanied by a recommendation of 'neutral'. Finally, they dedicate a target price of 27 euros to Naturgy and a 'neutral' one.