Goldman Sachs analyst Alberto Gandolfi downgraded the rating on EDP Energias de Portugal to a Sell today, setting a price target of €4.05.
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Alberto Gandolfi has given his Sell rating due to a combination of factors affecting EDP Energias de Portugal. Despite the potential benefits from industry trends such as increased power demand from data centers and electrification, as well as the need for power grid upgrades, EDP faces certain challenges.
The company’s balance sheet constraints and the normalization of profits in its unregulated activities suggest that its earnings may remain stagnant until 2028. Additionally, EDP’s valuation is higher compared to its peers, and its leverage is also elevated, which could lead to underperformance relative to its competitors. Consequently, Gandolfi has downgraded the stock to a Sell rating, with a new 12-month price target indicating a slight downside from current levels.
According to TipRanks, Gandolfi is a 5-star analyst with an average return of 11.5% and a 65.33% success rate. Gandolfi covers the Utilities sector, focusing on stocks such as EDP Energias de Portugal, Iberdrola, and RWE AG.