Redeia: Accelerating Post-2029 Regulated Growth With Fading Risk Underscores Buy Rating

In a report released today, Arturo Murua from Jefferies upgraded Redeia Corporación to a Buy, with a price target of €16.50.

Arturo Murua has given his Buy rating due to a combination of factors tied to valuation, growth visibility, and a fading risk profile. Redeia has lagged the broader European utilities sector, yet now trades at a modest premium to its FY27 regulated asset base versus higher premiums for peers, while still offering an appealing dividend yield of around 6%.

Arturo Murua’s rating is based on expectations that regulated asset growth will materially accelerate after 2029 as large projects, including the Balearic interconnection, enter service, supporting a stronger EPS trajectory through 2031. At the same time, regulatory and operational concerns—such as the new framework, potential equity issuance, blackout-related penalties, and capex inflation—are viewed as largely addressed or priced in, with most investment already contracted and the regulatory model providing meaningful cost recovery protection.