Jefferies cuts Redeia to 'hold' on regulatory risks
19/09/2025 09:12
** Jefferies downgrades Redeia REDE.MC to "hold" from "buy" after taking a more cautious stance on the Spanish electricity grid operator's outlook citing regulatory risks in the next five years ** Spain's anti-trust watchdog CNMC has raised the return on electrical grids investments to 6.46% from a previous 5.58%, but utilities demanded a return of 7.5%. The new remuneration limit is set to cover the 2026-2031 period ** The broker cuts its 2025–27 earnings per share (EPS) estimates by about 13%, reflecting a more cautious view on key parameters such as the nominal pre-tax rate of return (RoR), opex allowance, and regulatory asset base (RAB) growth ** Jefferies adds that the upcoming 2025-2030 Spain's National Investment Plan , which could reach 13.6 bln euros, wouldn't act as a major catalyst for the company, since it is already largely reflected in the consensus ** Out of 22 analysts that cover Redeia, nine rate the stock "strong buy" or "buy", 11 "hold" and two rate it "sell" - LSEG data (Reporting by Mireia Merino) ((Mireia.Merino@thomsonreuters.com; Reuters Messaging: mireia.merino.thomsonreuters.com@reuters.net/))