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Investing.com - JPMorgan downgraded EDP - Energias de Portugal SA (EDP:GR) from Overweight to Neutral while slightly raising its price target to EUR4.70 from EUR4.60.
The rating change follows EDP’s 49.7% year-to-date stock price increase, which has outperformed the European utilities sector by 22%, leaving limited upside potential to JPMorgan’s end-2026 price target.
JPMorgan expressed concern that market expectations for EDP’s upcoming Capital Markets Day on November 6 may overestimate the earnings growth contribution from its 71% affiliate EDPR through 2028.
The investment bank also noted that EDP management may guide conservatively and prioritize balance sheet strengthening as a key focus for the next few years.
JPMorgan estimates EDP’s 2028 net income at EUR1.43 billion compared to consensus expectations of EUR1.36 billion, but warns management might guide to a more conservative range of EUR1.3-1.4 billion, which could trigger profit-taking in both EDP and EDPR shares.
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