Update shared on 29 Oct 2025
Fair value Increased 2.17%Analysts have modestly increased their fair value price target for Endesa from €25.96 to €26.52. This change reflects a balance of improved profit margin expectations with ongoing uncertainties in network investment and sector preference.
Analyst Commentary
Bullish Takeaways- Bullish analysts have maintained relatively high price targets, reflecting confidence in Endesa's underlying value despite sector uncertainty.
- There is a positive shift in sentiment regarding the broader renewables space, with improving outlooks for onshore wind and solar generation supporting medium-term growth prospects.
- Improved profit margin expectations continue to underpin fair value estimates. This suggests that the company’s core operations remain resilient.
- The ongoing transition to cleaner energy sources is seen as a potential catalyst for improved valuation and long-term competitiveness.
- Bearish analysts have recently downgraded Endesa’s rating, citing sustained uncertainty in ramping up network investment and the execution of planned capex.
- Electricity generators remain a less preferred sub-sector among some major research houses. This is due to sector rotation and shifting investor preference towards other segments of the utilities market.
- Unchanged or lower price targets highlight concerns about Endesa’s capacity for near-term earnings growth relative to industry peers.
- There is increased caution around Endesa’s ability to deliver on its investment plans, which could weigh on valuation if execution risks persist.
Valuation Changes
- Consensus Analyst Price Target has risen slightly from €25.96 to €26.52, indicating a modest increase in overall valuation.
- Discount Rate remains unchanged at 7.49%, reflecting stable risk assessments and capital cost assumptions.
- Revenue Growth expectations have fallen from 4.42% to 3.78%, highlighting a more conservative outlook for top-line expansion.
- Net Profit Margin has improved slightly from 8.34% to 8.48%, suggesting expectations for better profitability.
- Future P/E has increased from 16.28x to 16.67x, indicating a marginally higher valuation multiple being applied to future earnings.
Disclaimer
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