Iberdrola, the Utilities sector company, was revisited by a Wall Street analyst today. Analyst Robert Pulleyn from Morgan Stanley maintained a Hold rating on the stock and has a €17.00 price target.
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Robert Pulleyn’s rating is based on a combination of factors that present a mixed outlook for Iberdrola. While the company reported a significant beat in net income for the third quarter, driven by lower depreciation, better net finance expenses, and favorable tax outcomes, the underlying EBITDA fell slightly short of consensus expectations. This discrepancy may be attributed to foreign exchange impacts that were mitigated by hedging strategies.
Additionally, Iberdrola’s decision to raise its full-year net income guidance to reflect double-digit growth indicates a positive trajectory, yet the stock’s current valuation, with a price-to-earnings ratio of 19.6x for 2026, suggests limited upside potential. Despite the stock’s 29% year-to-date increase, which outpaces the sector by 5%, the modest revisions in earnings forecasts and the complex nature of earnings definitions and one-off items contribute to the Hold rating. Therefore, while Iberdrola’s financial performance shows strength, the stock’s valuation and market position warrant a cautious approach.
In another report released today, RBC Capital also maintained a Hold rating on the stock with a €17.00 price target.
Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is neutral on the stock.