EDP, EDPR shares drop as 'conservative' targets undershoot expectations

Edp Renewables SA

07/11/2025 16:19

** Portuguese utility EDP EDP.LS and EDPR EDPR.LS share prices fall around 11% and 9%, respectively, over the last two days, after its targets in the 2026-28 strategic plan disappoint market expectations

** The utilities company said on Thursday it plans to invest 12 billion euros mainly in renewables, but J.P.Morgan analysts highlight that EBITDA and net income targets are below their estimates, achieved with higher network investments than anticipated

** The broker says "targets look conservative" and thus unlikely to trigger a positive response, and emphasises on the impact of higher tax equity liabilities, with economic net debt exceeding expectations

** Though J.P.Morgan notes that EDPR 2026-28 targets were in line with their expectations and with the consensus at the net income level, it says they fall slightly short at the EBITDA level

** EDP falls around 6% on Friday, while EDPR drops around 5%, widening the previous day's losses

 (Reporting by Mireia Merino)

 ((Mireia.Merino@thomsonreuters.com))