Update shared on 28 Nov 2025
Fair value Increased 0.76%Analysts have lowered their price target for Endesa to €27.16 from €26.95. They cite concerns over normalizing electricity and gas margins, as well as sector rotation among European utilities.
Analyst Commentary
Recent research notes have highlighted a shift in sentiment around Endesa’s prospects. The company has faced several downgrades and a lowering of price targets, triggered by changes in sector dynamics and a reassessment of valuation and growth expectations.
Bullish Takeaways
- Stable demand for electricity and gas supports revenue visibility in the near term.
- Endesa maintains a robust position in the Spanish utilities market, providing some downside protection amid sector volatility.
- Exposure to renewable energy is seen as a longer-term growth lever as the outlook for onshore wind and solar improves in Europe.
Bearish Takeaways
- Valuation is elevated relative to sector peers, raising concerns about limited upside potential given softer margin expectations.
- Analysts anticipate normalization of electricity and gas profits, bringing results down from the recent record levels.
- Uncertainty surrounds Endesa’s ability to accelerate network investments, putting future growth projections at risk.
- Sector rotation within European utilities is prompting a shift of preference away from generators such as Endesa, especially as other sub-sectors show stronger momentum.
What's in the News
- Endesa confirmed its earnings guidance for the year 2025, indicating confidence in reaching the upper range of its net income forecast (Key Developments).
- The company expects to achieve the top end of its Capital Market Day guidance for the full year 2025, supported by current results (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from €26.95 to €27.16.
- Discount Rate remains unchanged at 7.65%.
- Revenue Growth estimates have fallen modestly from 5.05% to 4.61%.
- Net Profit Margin has improved slightly, increasing from 8.13% to 8.23%.
- Future P/E ratio has edged up from 16.75x to 16.89x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.