Iberdrola: Oddo BHF confirms 'outperform' rating

(CercleFinance.com) - Oddo BHF maintains its 'outperform' rating on Iberdrola shares, with a target price of E13.
8.

Iberdrola yesterday announced that its 81.5%-owned US subsidiary Avangrid has terminated its merger agreement with PNM Resources after rejecting the latest attempt to extend the deadline for the project's completion.

For information, Avangrid had proposed to acquire PNM Resources in 2020 for an enterprise value of E7bn, with a further E2bn to be invested in renewable projects.

The analyst considers that, once again, this decision reflects the pragmatism of the Group's strategy in the face of the administrative and political difficulties encountered since this operation's launch.

For Oddo BHF, the reallocation of these financial resources to projects, including those in the US, which have already been identified, is good news, which, moreover, will remove the risk of an Avangrid capital increase.


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