AlphaValue downgrades Austria's Verbund on fears of rising debt

VERBUND AG

19/03/2026 12:59

** AlphaValue cuts Verbund VERB.VI by two notches to "reduce" from "add" as it expects rising net debt amid the Austrian utility's renewables push, transmission network expansion

** Higher capital expenditure under the company's updated investment plan and lower EBITDA forecasts are set to increase net debt in 2026, the broker says, reducing its net asset value estimate

** Verbund increased on Wednesday its investment plan for 2026-2028 to spend 6.8 billion euros ($7.8 billion), up from 5.9 billion euros for 2025-2027

** AlphaValue notes that planned expenditure is "unlikely to be sufficient" to meet Verbund's target of about 4.7 gigawatts in total installed renewable capacity by 2030, anticipating additional spending beyond 2028

** It also expects a negative impact on earnings from lower hydropower generation this year after a "relatively dry" winter, with little scope for a significant recovery in the second quarter

** Out of 15 analysts covering Verbund, ​one rates the stock "buy", ​​five rate "hold" and nine​ rate "strong sell" or "sell" –LSEG data

($1 = 0.8715 euros)

 (Reporting by Danny Callaghan)

 ((danny.callaghan@thomsonreuters.com))