20 C
New York
Friday, May 27, 2022

Iberdrola will earn more this year, according to Morgan Stanley

- Advertisement -
- Advertisement -

Iberdrola will earn more this year, according to Morgan Stanley

Iberdrola losing positions in the market in view of a year that continues to be difficult for companies amid the explosion in the price of electricity and the uncertainty in the sector about regulatory measures that governments can decide and that affect their income statements for this year.

At the moment, in that negative measure for the value at the moment “wait and see”, of Morgan Stanley improve their expectations in some parameters in view of the estimates of their results for this year. While they are in line with the expectation of net profit in the upper part of the market consensus range, 4,200 million euros, due to the expected improvement in the level of income from the wind farm that compensates for a lower expected Ebitda and the increase in financial guests.

From the American firm they bet on its resilience despite the current situation, especially in case of geographic diversification and the expected boost in the European market to promote renewables and accelerate the change to sustainability in the face of the crisis unleashed by Russia. His recommendation on the value remains at 12 euros per share with the advice to overweight the value in the market.

In its stock chart we see how the value rebounded yesterday after the lack of announcements by Pedro Sánchez about more pressure on the power companies and to the verse benefited by the RECORE, the reduction of 1,800 million in the remuneration regime for the production of energy from renewables. Although the measures that it sends on the lowering of the invoice to Brussels with Spain and Portugal considered as “energy island”. So Iberdrola rReduce your annual cut below 5%.

Iberdrola annual stock price

Iberdrola annual stock price

For Néstor Borrás, independent analyst Iberdrola “managed to rebound from the key support level of 8,445 euros, leaving a minimum at which to work at 8,472 euros per share. The first resistances are located in the simple moving averages of medium and long term. To confirm a trend reversal, it is necessary to break the resistance of 10,346 euros, since, it would validate a double bottom pattern as it currently has two lows in the support area of ​​8,445 euros per share”.

Iberdrola on daily chart with Average Amplitude Range in percentage, MACD oscillator and trading volume

Iberdrola technical analysis of value

Iberdrola technical analysis of value

And with regard to the technical indicators prepared by Investment Strategies, we see that Iberdrola improves slightly, in the midst of the rebound, with an improvement of two points that, however, they only place him in 3 total points of the 10 possible for the value. Among the positives we find the medium-term trend that is upward and also the volume of business in the medium term that is growing for the value.

On the negative side, the long-term downward trend stands out above all, total momentum, slow and fast negativeas well as the volume on the large square, which is shown to be decreasing for Iberdrola, to which is added volatility, its amplitude range, which is increasing in the medium and long term for the value.

From the fundamental point of view, Iberdrola “based on a valuation by ratios and with an EPS budget for the end of 2022 from €0.64/lot (revised in all after the publication of accounts at the end of 2021), the security is listed with a PER of 14.5v 2022e, with a discount compared to the historical ratio of around 17.7v in the last three years, and a margin also of improvement compared to the average PER for the selective Ibex 35 companies”, as analyzed the fundamental expert of Investment Strategies María Mira.

In addition, it highlights thatFor book value the market discounts 1.35v for Iberdrola, lower than that of its main competitors and 2v for the companies that make up the Spanish team. Iberdrola’s return on dividend-yield (4.7% at current prices) seems very interesting. Based on our fundamental assessment, we maintain a positive long-term recommendation for a company with fundamental quality and good growth prospects.”

If you know the value of most of the Stock Market assets, register for free at Investment Strategies.

Source link

- Advertisement -

New Articles