Bernstein downgrades Redeia stock rating on lower long-term growth outlook

Published 22/09/2025, 08:26
Bernstein downgrades Redeia stock rating on lower long-term growth outlook

Investing.com - Bernstein has downgraded Redeia Corp SA (BME:RED) from Outperform to Market Perform, while lowering its price target to EUR18.15 from EUR20.00.

The research firm has cut its adjusted EPS estimates for Redeia by 17% for 2027 and approximately 27% for 2030. Bernstein’s new estimates align with consensus for 2026 but fall 7% below consensus for 2027 and approximately 20% below for 2030.

Bernstein noted that while the new price target offers about 10% upside potential, this is "not attractive enough to maintain the stock as a top pick with a positive rating."

The downgrade reflects concerns that the market will negatively interpret messages about lower-than-anticipated earnings and RAB growth, as well as pressure on the company’s balance sheet and credit rating.

Bernstein expects positive news regarding final remuneration for Redeia, but determined this was insufficient to maintain an Outperform rating on the Spanish grid operator’s stock.

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