* Bernstein analyst Javier Garrido maintained a "Market Perform" rating on Iberdrola, with a price target of 14 euros.
* The analyst noted that Iberdrola's recent acquisition of PNM Resources for $834 million and its ongoing expansion in renewables were positives for the company's long-term growth prospects.
* However, Garrido also highlighted concerns about the company's exposure to regulated markets and its high leverage, which could limit its ability to invest in new growth opportunities.
Bernstein's Rating on Iberdrola and Target Price
Bernstein analyst Javier Garrido reiterated a "Market Perform" rating on Spanish utility Iberdrola, with a price target of 14 euros per share. The analyst's rating suggests that the firm expects Iberdrola's stock price to perform in line with the broader market over the next 12-18 months.
Factors Influencing the Market Perform Rating
In his research note, Garrido highlighted several factors that influenced his rating on Iberdrola. The analyst noted that Iberdrola's recent acquisition of PNM Resources for $834 million and its ongoing expansion in renewable energy were positives for the company's long-term growth prospects. However, Garrido also raised concerns about the company's exposure to regulated markets and its high leverage, which could limit its ability to invest in new growth opportunities.
Key Strengths and Challenges
**Strengths:**
* Strong presence in growing renewable energy sector
* Acquisition of PNM Resources enhances presence in the US market
* Commitment to innovation and sustainability
**Challenges:**
* Exposure to regulated markets limits revenue growth potential
* High leverage could constrain investment capacity
* Competition from other renewable energy players
Forecast and Outlook
Bernstein's rating and target price imply that the analyst expects Iberdrola's stock price to remain relatively stable over the next 12-18 months. Garrido noted that the company's recent acquisition of PNM Resources and its ongoing expansion in renewable energy were positives for the company's long-term growth prospects. However, the analyst also highlighted concerns about the company's exposure to regulated markets and its high leverage, which could limit its ability to invest in new growth opportunities.
