Citi resumes Redeia stock coverage with Buy rating, EUR19.70 target

Published 23/07/2025, 08:48
Citi resumes Redeia stock coverage with Buy rating, EUR19.70 target

Investing.com - Citi resumed coverage on Redeia Corp SA (BME:RED) with a Buy rating and a price target of EUR19.70 on Wednesday.

The investment bank believes that while Redeia’s accelerated growth story has been delayed, it has not been canceled, with full clarity on capital expenditure profile and regulatory framework expected by the end of this year.

Citi anticipates consensus earnings upgrades following these clarifications, noting that full WIP remuneration could potentially lead to a 15% net income upgrade for Redeia by 2030.

The firm projects a total shareholder return of 14% by 2030, consisting of 9% earnings per share compound annual growth rate (2025-30) and an average dividend yield of 5%.

According to Citi, Redeia’s valuation metrics appear attractive with the stock trading at an 11% premium to RAB and a 2025 estimated EV/EBITDA of 12.9x, compared to European regulated utilities trading at 25% and 12.2x respectively.

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