Jefferies downgrades Iberdrola, favours SSE and Engie among integrated utilities

SSE

11/12/2025 08:06

** Looking into 2026 for Europe's integrated utilities, Jefferies favours exposure to regulated grids with potential for positive surprises through regulation, strong balance sheets and robust non-regulated businesses

** The brokerage cuts Iberdrola IBE.MC to "hold" from "buy", saying the Spanish group's growth outlook is priced in after the stock's around 35% gains this year

** "Iberdrola's high-single-digit EPS growth outlook is attractive but appears well-understood," Jefferies says, adding the driver for a next growth outlook upgrade is less clear

** Jefferies elects "buy"-rated SSE SSE.L as one of the sector top picks, saying several positives from UK regulation are yet to be priced in

** Also with a "buy" rating, France's Engie ENGIE.PA is another top pick, as Jefferies says markets underestimate its growth outlook

(Reporting by Tiago Brandao)

((Tiago.Brandao@thomsonreuters.com;))