EDP (EDP.LS): Waiting for delivery. Buy

Research evidence excerpt

EDP (EDP.LS): Waiting for delivery. Buy

Action |

31 Jul 2026 00:11:16 ET │ 19 pages

EDP (EDP.LS)

Waiting for delivery. Buy

CITI'S TAKE

Buy EDP 1H26 results demonstrated a solid set of operational delivery,

earnings upgrade for FY26 and commitment of a CMD in 2Q27 to cover Price (30 Jul 26 16:30) €4.44

medium term growth opportunities. But the markets wanted more Target price €5.10

concrete targets. In our view, the set up into 2Q27 CMD is supportive; 1. Expected share price return 14.9%

CEO talked to announcing c.500MW of powered land capacity in the Expected dividend yield 4.5%

coming months; 2. Opportunities for another asset rotation with robust Expected total return 19.4%

EV/IC in 2H that contribute to earnings and brings confidence to multiple

Market Cap €18,577M sustainability; 3. CMD with outlook through 2030 that encompasses

US$21,415M more investments at EDPR (repowering, PPA repricing and capacity

growth), network growth and FlexGen optimisation opportunities. EDP

continues to trade at a discount on PE and EV/EBITDA, respectively,

versus integrated peers and the discount on EDP stub is even more Jenny PingAC

difficult to rationalise. We continue to highlight EDP as one of our +44-207-986-6974

preferred integrated utilities and reiterate our Buy. jenny.ping@citi.com

Chris McDonagh

DataCentre Delivery — CEO of EDP confirmed on its 1H26 conference call that +44-20-7986-2118

500MW of datacentre grid connection capacity in Iberia, split between Spain and chris.mcdonagh@citi.com

Portugal is in place for marketing and hope to come back to the market with details

of transactions "in the coming months". The company talked about further 1.5GW of

grid connection capacity, mostly in the US, which EDP/R is developing to bring to

the market.