Analysts have raised their price target for Neoenergia from R$32.52 to R$32.94, citing slightly improved profit margin projections and updated discount rate assumptions. This comes despite tempered expectations for revenue growth.
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.
- The transaction values Neoenergia shares at BRL 32.5 per share. The total cash consideration for the deal is BRL 11.95 billion, subject to potential adjustments.
- After completion, Iberdrola Group’s ownership in Neoenergia will rise to approximately 83.8% of total share capital.
- The acquisition is pending regulatory approval from the National Electric Energy Agency. Closing is expected in the fourth quarter of 2025. (Key Developments)
- Bank of America (Espana) SA is acting as financial advisor to Iberdrola Energía, S.A.U. for this transaction.
Valuation Changes
- Consensus Analyst Price Target: Increased slightly from R$32.52 to R$32.94 per share.
- Discount Rate: Rose modestly from 18.75% to 18.88%.
- Revenue Growth: Forecast has decreased. It is now projected at -2.99% compared to the previous -2.26%.
- Net Profit Margin: Margins are expected to improve, rising from 9.19% to 9.71%.
- Future P/E: Decreased to 14.61x from 15.12x, indicating a slightly lower earnings multiple.
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