KBC questions Elia's investment plans vs political uncertainty - cuts to 'accumulate'

Elia SA

15/01/2025 09:20

** KBC cuts grid operator Elia Group  ELI.BR  to
"accumulate" from "buy", citing inadequate capex strategy
considering the recent political changes
    ** The group's investment strategy is based on grid
development plans that are not longer valid due to the political
reconfiguration after the U.S. and Belgian elections, the broker
says
    ** "Elia is caught is a vicious value destruction circle and
should reconsider its strategy," KBC says
    ** KBC cuts its target price by 31.5% to EUR 85, citing the
stock's persistent devaluation as market support falters
    ** Out of 14 analysts covering the stock, 10 rate it
"buy"/"strong buy", three "hold" and one "sell"
    ** Elia's shares lost about 34% in value over 2024 and are
down about 17.6% so far in 2025
    
    

 (Reporting by Alban Kacher)
 ((alban.kacher@thomsonreuters.com))