Iberdrola SA | Europe Initial Thoughts on Finnish Caruna Acquisition

Research evidence excerpt

Iberdrola SA | Europe Initial Thoughts on Finnish Caruna Acquisition

Update

July 21, 2026 09:12 PM GMT

Morgan Stanley & Co. International plc+MIberdrola SA | Europe Robert Pulleyn

Equity Analyst and Commodity Strategist

Initial Thoughts on Finnish Robert.Pulleyn@morganstanley.comMarina Fuentes Juan +44 20 7425-4388

Research Associate

Marina.Fuentes.Juan@morganstanley.com +44 20 7425-2268

Caruna Acquisition Morgan Stanley Europe S.E., Paris Branch+

Arthur Sitbon, CFA

Equity Analyst

Key Takeaways Arthur.Sitbon@morganstanley.com +33 1 42 90 71-03

We expect a cautious market reaction to the announced deal given high implied Morgan Stanley & Co. International plc+

multiples vs low near-year growth. Sarah E Lester, CFA

Yet, deal is small at ~2% Iberdrola 2027 Net income and 1.4% of market cap, and Sarah.Lester@morganstanley.com +44 20 7425-0551

management have strong track record on capital allocation. Arthur Descazeaud

Whilst implied multiples appear high vs peers & recent M&A, the deal is at a Arthur.Descazeaud1@morganstanley.com +44 20 7677-1282

discount to Iberdrola's valuation which supports instant shareholder value

Iberdrola SA (IBE.MC, IBE SQ)

accretion

Utilities | Spain

Iberdrola make a compelling case for Finland electricity demand outlook, Stock Rating Equal-weight

including from data centres, which provides supportive read across for Nordic Industry View Attractive

Price target €22.00

peers. Shr price, close (Jul 21, 2026) €21.32

52-Week Range €21.65-14.63

Market may question whether such deals indicate there is less attractive organic Mkt cap, curr (mn) €142,444

Net debt (12/26e) (mn)* €59,671

or inorganic opportunities in existing core Iberdrola businesses.

EV, curr (mn)* €210,469

* = GAAP or approximated based on GAAP