Commodity PricesEndesa’s current integrated EBITDA is running at least around 50% higher than those pre-Russia/Ukraine war, driven by higher commodity prices and retail margins, neither of which is believed to be sustainable.
Earnings OutlookThe downgrade to Sell reflects the view that the earnings upgrade cycle is soon coming to an end following 'peak integrated margins' in electricity.
ValuationShares, which trade on a 2026-27E PE of c.13x, are largely seen as fully valued.