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Investing.com - Bernstein SocGen Group downgraded Endesa, S.A. (BME:ELE) (OTC:ELEZY) from Outperform to Market Perform and lowered its price target to EUR26.50 from EUR27.50.
The downgrade comes as Endesa shares have risen 24% year-to-date, outperforming European peers, but now show limited upside potential to Bernstein’s new price target.
Bernstein noted that a key growth driver for Endesa - capital expenditure and high network returns - is "running out of steam," with no updates expected on final determination until November 2025.
The firm revised its earnings per share estimates downward by 4.4% for 2026 and 6.9% for 2027, reflecting a more cautious outlook on the company’s future performance.
While Bernstein acknowledged that Endesa’s ongoing EUR500 million share buyback program, scheduled to run through December 2025, may provide interim support for the stock price, it indicated that a more bullish outlook would require positive developments in the network remuneration framework or power price improvements.
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