Goldman Sachs grants Iberdrola a compound annual growth rate (CAGR) of 10% in gross operating profit (ebitda) for the period 2023-2025. The US investment bank’s forecasts are somewhat more optimistic than those of the electricity company itself, which vary between 8% and 9%. For this year, the company chaired by Ignacio Sánchez Galán calculates an ebitda of 13,000 million euros, so that within two years it would reach 16,900 million euros, with Spain representing 31% of the total.
Bank analyst Alberto Gandolfi also believes that the company will continue to maintain an “attractive dividend policy”, with an average annual yield of 4.5%. Iberdrola expects to allocate more than 11,000 million euros to remunerate its shareholders between 2023 and 2025 as ‘pay-out’, with an estimate of reaching between 0.55-0.58 euros per share in 2025, with a floor of 0. 46 euros in 2023-24 and 0.50 euros in 2025, within the Iberdrola Flexible Remuneration program, which includes the repurchase of securities.
In this sense, Gandolfi recommends buying shares of the energy company. Iberdrola closed the negotiation this Tuesday at 10.84 euros per share, 0.28% more than on the previous day. The company ended 2022 with a capitalization of 69,540 million euros, positioning itself as the largest ‘utility’ in Europe and the fourth in the world. As of January 23, capitalization has fallen by 1%.
Regarding net profit, Iberdrola expects an increase of between 8% and 10% per year, going from the 4,000-4,200 million euros with which they expect to close the accounts in 2022 (29% more than in 2021). 5,400 million by the end of the period. To meet your goal, calculate record investments of about 47,000 million. The figure includes the 11,000 million euros for the purchase of the American
Outlook for 2030
Iberdrola also reaffirmed at Capital Markets Day in November its prospects for 2030 of exceeding 100 gigawatts (GW) of installed capacity and 65,000 million euros in network assets.
Following the presentation of the plan, UBS, Mediobanca, Banco Santander, Goldman Sachs, Barclays, Morgan Stanley, Deutsche Bank, CaixaBank and Renta 4 have revised their forecasts and mostly raised the average price target, placing it around 12 euros per share. title. 53% of the analysts managed to buy, 47% advised holding and none were in favor of selling the shares.
Iberdrola has recently sealed a strategic alliance with the Norwegian sovereign wealth fund, managed by Norges Bank Investment Management, to jointly invest in 1,265 megawatts (MW) of new renewable capacity in Spain, of which 20% corresponds to wind power and 80%, photovoltaic. The valuation of 100% of the portfolio is around 1,225 million euros.
According to information from both companies, the Spanish electric company will have a majority percentage of 51% in the assets, for which Norges Bank will disburse 600 million euros. The agreement could be extended to other countries in the future. The company estimates that it will get a total of 2,600 million euros by 2025 after giving entry to non-majority partners in various projects. Likewise, it contemplates raising another 4,900 million euros with its asset rotation plan, which will be about 3% of the total it manages.
next meeting
Under this scenario, Sánchez Galán is preparing to obtain the support of the shareholders for a new term as president at the next general meeting of shareholders. The last time they approved the re-election of the manager was in 2019 (and until 2023). He has been criticized for his concentration of power, but this has been backed by the utility’s record profits and, in October of last year, he separated the positions of executive chairman and CEO.
Appointed Executive Vice President and CEO of Iberdrola in 2001, he has held the position of Chairman and CEO of the group since 2006. The change came shortly after turning 72 and after he was completely dismissed from the ‘Villarejo case’.
