Deutsche Bank has cut its valuations of several European utilities this Monday. Among them are the Spanish Redeia, Iberdrola and Enagas, that in a session of increases in the Ibex 35 (up 0.6% in the middle of the session) are among the most bearish values.
Redeia takes the worst part, since the German bank has recommended selling shares of the company (until now, I advised keeping them). It has also lowered its target price for Redeia by 14%, to 15 euros from the previous 17.50. This implies that he sees the company as overvalued in the market, since it is currently trading at around 16 euros. This Monday, in the middle of the session, Redeia fell 1.3%, placing itself as the second most bearish on the Ibex 35 in the session, only behind Telefónica (which lost 2.8% after the departure of president Álvarez-Pallete and his replacement by Marc Murtra).
In the other two cases – Enagás and Iberdrola – the entity does not change its recommendation, which continues to be to maintain the shares of both in the portfolio. But it leaves them both without potential. The increase in Enagás’ valuation is a striking 20%from 14.50 to 11.50 euros. It leaves it without any upward path, since Enagás is at 12 euros, after falling 0.50% mid-session on Monday. In the case of Iberdrola, the cut made by Deutsche is less than 4%, from 13 to 12.50 euros. The electricity company chaired by Ignacio Sánchez Galán lost 0.30% in mid-afternoon, up to 13.28 euros, leaving it without potential, in the eyes of the German bank.
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