EUR 200.00 For Business Accounts Only

ENDESA: STRATEGIC PLAN THROUGH 2022 (ANÁLISIS BANCO SABADELL)

Strategic Plan through 2022: a bet on renewables. We maintain SELL.
ELE presented a plan that is highly focused on renewable assets (~52% of total investment), which allows the company to raise its EBITDA guidance for 2020 and 2021 by +3% and +2%, respectively, and to set a new target of € 4.3 Bn of EBITDA for 2022. Our estimates (which we raise by +1% on average) are below the company’s (-9% on average over the period and -8% in 2022), as is the case with the consensus (-11% on average and -13% in 2022). The company’s dividend policy will remain unchanged until 2021 (with a payout of 100% through 2020 and of 80% in 2021), but the payout will be lowered from 80% to 70% in 2022, as the company is open to making new acquisitions. We raise our T.P. by +10% to € 24.15/sh., leaving us without upside, which we would only see (+13%) if we were to assume ELE’s full targets from the plan in our estimates.