Analysts have raised their price target for Neoenergia from R$31.98 to R$32.52. They cite anticipated improvements in profit margins and a more optimistic outlook on revenue growth, despite a slightly higher discount rate.
What's in the News
- Iberdrola Energía, S.A.U. has agreed to acquire an additional 30.29% stake in Neoenergia S.A. from Caixa de Previdencia dos Funcionarios do Banco do Brasil for BRL 11.9 billion, valuing shares at BRL 32.5 each (Key Developments).
- After the transaction is completed, Iberdrola Group's ownership in Neoenergia will rise to approximately 83.8% of the total share capital (Key Developments).
- The deal is subject to standard regulatory approvals, including authorization from the National Electric Energy Agency. It is anticipated to close in the fourth quarter of 2025 (Key Developments).
Valuation Changes
- Fair Value has risen slightly from R$31.98 to R$32.52 per share.
- Discount Rate has increased marginally from 18.61% to 18.75%.
- Revenue Growth estimates have improved, with the projected decline moderating from -3.99% to -2.26%.
- Net Profit Margin has strengthened from 6.87% to 9.19%.
- Future P/E ratio has fallen significantly from 20.91x to 15.12x.
Disclaimer
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