The British bank HSBC has improved this Wednesday its recommendation for the shares of Endesa from hold to buy, and has raised its target price from 21.60 to 24.20 euros. Taking into account that the electricity company is currently trading close to 19.40 euros, this valuation – which is the fourth highest among the 23 analysis houses that follow the company – implies an upside potential of 24%. HSBC had been giving Endesa uninterrupted maintenance since at least March 2023 (the earliest date from which Bloomberg offers data).
Bernstein and CaixaBank have also updated their recommendations and target prices for the utilities this Wednesday, but they have not made any changes: they have reiterated the purchase advice that they already issued for it, and maintained their previous valuations (Bernstein sees it at 24 euros, and Caixa at 23.30).
Like the vast majority of Ibex 35 companies, Endesa suffered a striking decline in the stock market on November 6, when almost all members of the index experienced a correction after Donald Trump’s victory in the US elections was announced: The electricity company fell 3.6% that Wednesdayin which the Ibex 35 fell 2.90%. It was not one of the most bearish quotes that session. Since then, it has recovered 1.25%, and for the year as a whole it has risen 5.7%. It is trading at only 3% of its annual maximum, which reached the edge of 19.99 euros in September. And it has not reached the psychological barrier of 20 euros since September 2023.
At the end of October, Endesa presented results for the first nine months that beat estimates, increasing its profit by 33% until September, to 1,404 million euros.
The average number of analysts collected by Bloomberg gives the company an average target price of 21.92 euros, up to which the company has a journey of 13%. Ahead of HSBC, the most optimistic houses regarding the company’s potential are Oddo BHF (which sees it trading 30.4% higher, at 25.30 euros), Alantra Equities (places it at 25.19 euros, 30% more) and JB Capital Markets (which values it at 24.70 euros, with a potential of 27%).
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