EDP Renovaveis "On track to deliver 2026-28E Plan; improving outlook for..."

Research evidence excerpt

EDP Renovaveis "On track to deliver 2026-28E Plan; improving outlook for..."

Global Research

19 May 2026ab

EDP Renovaveis Equities

PortugalOn track to deliver 2026-28E Plan; improving

outlook for asset rotation and US offset by yields Electric Utilities

12-month rating Neutral

12m price target €14.10Superior diversification and US exposure reflected in price; Neutral reiterated

Prior : €13.50

Following some disappointment post-plan presentation in November last year - on

unrealistic market expectations, in our view - share have recovered and EDPR price is up Price (18 May 2026) €13.83

13% YTD, in line with renewables IPPs (+14%) but outperforming the wider sector RIC: EDPR.LS BBG: EDPR PL

(+8%). We believe the new plan is conservative and achievable, with moderate capacity

additions and a focus on efficiency and de-leveraging, while still delivering an above- Trading data and key metrics

average annual net profit growth of 27% through 2029E. Higher geographical and 52-wk range €14.67-8.55

technological diversification, exposure to the US market (c55% of EBITDA and c60% of Market cap. €14.5b/US$16.9b

capacity additions) and a mature portfolio justify in our view a premium valuation vs. Shares o/s 1,051m (ORD)

peers. However, all of this seems to be well reflected in current market price: our new Free float 17%

€14.10 PT (+4%) offers limited fundamental upside potential, and the stock trades in Avg. daily volume ('000) 1,061

line with its historical P/E. Potential tailwinds from power demand growth in the US may Avg. daily value (m) €14.4

imply upside, but we expect limited impact pre-2028E. Neutral reiterated. Common s/h equity (12/26E) €10.7b

P/BV (12/26E) 1.4x

FY26 EBITDA guidance raised 5% to €2.2bn; 2026-28E Plan remains on track Net debt to EBITDA (12/26E) 3.5x