EDP Renovaveis (1K) | Buy | H1-26E preview: Reviving Asset Rotation

Research evidence excerpt

EDP Renovaveis (1K) | Buy | H1-26E preview: Reviving Asset Rotation

#EarningsPreview #TPchange

Release date: 22 July 2026

Company research

ESG profile BuyEDP Renovaveis

Portugal | Utilities Beta Profile: MCap: EUR14.7bn Country Top Picks

Target Price: EUR15.40 (15.00) Change in TP: 2.7 % Bloomberg: EDPR PL Reuters: EDPR.LS

Current Price: EUR14.00 Change in Sales: 6.2% 26E/7.3% 27E Free float 21%

Up/downside: 10.0% Change in Adj EBIT: 14.9% 26E/6.4% 27E Avg. daily volume (EURm) 22.6

YTD abs performance 16.3% Market data: 21 July 2026 Change in Adj. EPS: 8.4% 26E/-1.4% 27E

52-week high/low (EUR) 14.67/9.62

H1-26E preview: Reviving Asset Rotation Price performance

Why this report?

We modestly increase our earnings estimates, lift our TP to EUR15.4 per share

and maintain a Buy recommendation. The key change is an increased

confidence in asset rotation execution. Following the 5% EBITDA guidance

upgrade after 1Q26, management highlighted improving operational

execution, higher asset rotation margins and a stronger US commercial

backdrop. Since then, EDPR has signed the disposal of a 68MW Italian wind

and solar portfolio, which we estimate implies healthy capital gains of around

EUR50m, confirming attractive private market valuations for quality RES

assets. Also, the announced disposal of EDPR Brasil to EDP further

streamlines the portfolio and reinforces management's strategy of focusing

on core low-risk markets. Operationally, more than 95% of the 2026 capacity

additions are already installed or under construction, providing high visibility FY to 31/12 (EUR) 12/26E 12/27E 12/28E

on delivery, while the US continues to benefit from improving PPA pricing, Sales 2,725 2,853 3,033

EBITDA adj. 2,228 2,236 2,361