Iberdrola: shares could trade towards 10 euros, analyst says
(CercleFinance.com) - Shares of Spanish utility Iberdrola could trade towards 10 euros, analysts at Morgan Stanley say.
The brokerage firm - which cites a "bull case" scenario - says the market is undervaluing the group's ability to beat its growth targets.
In a research note, Morgan Stanley says it is confident that Iberdrola's growth options in the US and Latam, coupled with cost cutting, could lead to EPS upgrades of approximately 17% by 2020.
The broker hence maintains its "overweight" rating on the stock, raising its target price for the stock from 7.3 euros to 8 euros.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The brokerage firm - which cites a "bull case" scenario - says the market is undervaluing the group's ability to beat its growth targets.
In a research note, Morgan Stanley says it is confident that Iberdrola's growth options in the US and Latam, coupled with cost cutting, could lead to EPS upgrades of approximately 17% by 2020.
The broker hence maintains its "overweight" rating on the stock, raising its target price for the stock from 7.3 euros to 8 euros.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.