MS cuts EDPR to 'equal-weight' but sees room for EPS growth

Edp Renewables SA

24/10/2025 09:56

** Morgan Stanley downgrades EDP Renovaveis EDPR.LS to "equal-weight" from "overweight", saying that further EPS upgrades have been largely priced in during the recent rally

** Still, it raises its PT by 8% to 13.50 euros to reflect the recent rise in appetite from investors for renewable names and slightly higher earnings estimates

** Consensus estimates do not fully reflect the group's "overlooked U.S. merchant power exposure", MS says, pointing to further room for EPS growth after its CMD in November

** The brokerage keeps its preference for EDPR over EDP EDP.LS, expecting shares in the renewable arm to perform better in the coming months than those of the parent company

** "We think EDPR shares could keep benefiting from being perceived as one of the few ways to play the theme of U.S. power market tightness via European names," MS says

** Out of 25 analysts that cover EDPR, 16 rate the stock "strong buy" or "buy", seven rate it "hold" and two rate it "strong sell" or "sell" - LSEG data

 (Reporting by Gemma Guasch)

 ((gemma.guasch@thomsonreuters.com;))