EUR 200.00 For Business Accounts Only

IBERDROLA: CMD & ESG 2023-25 (ANÁLISIS BANCO SABADELL)

2023-25 CMD&ESG: Maintains pace of investment and financial prudence, and raises guidance. BUY.
IBE will maintain the investment pace over the period (€ 47 Bn, with PNM), with a special focus on Networks (57% total) and on the US rather than on Renewables (it will be more selective and will have greater offshore weight). For the 2023-25 period, on the operating level, the company improved its guidance for EBITDA (+8%/+9% CAGR vs. +6%/+7% previously, BS(e) and consensus) and Net Profit (+8%/+10% vs. +6%/+7% previously, consensus and BS(e)), and commits to a growing dividend (2025e DPS of between € 0.55/sh. and €-0.58/sh. vs. € 0.53/sh./€ 0.56/sh. previously; 6% yield). Financial strength will continue to be priority (3.4x NFD/EBITDA’25e), meaning that the plan will be financed with robust cash generation, debt, asset rotations and strategic partnerships. After we have included all the variables announced in our estimates (with an average increase in EBITDA of ~+7%), we would expect a positive impact of ~+9% on our T.P. (vs. our current T.P. of € 11.75/sh.). IBE remains our top pick within the Spanish integrated utilities and thus, we reiterate our BUY recommendation.