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The analyst price target for Iberdrola has increased modestly from EUR 16.14 to EUR 16.32. This change reflects analysts' optimism driven by recent positive revisions to revenue growth forecasts and supportive updates from multiple research firms.

Analyst Commentary

Recent research activity around Iberdrola has reflected a growing optimism among analysts regarding the company’s valuation and growth trajectory. Several price target increases and a notable upgrade have highlighted positive expectations, though some reservations remain around execution and sector dynamics.

• Bullish analysts have raised price targets, signaling greater confidence in Iberdrola’s earnings outlook and execution on growth initiatives.
• Upgrades reflect expectations that Iberdrola will outperform sector peers based on strong fundamentals and targeted expansion in renewable energy.
• Recent upward revisions in price targets are linked to improved revenue growth forecasts and a supportive regulatory backdrop in key operating markets.
• Higher valuations are being justified by Iberdrola’s ability to deliver steady cash flow and leverage its leadership position in the global utility sector.

• Bearish analysts maintain a more cautious stance, pointing to sector challenges that could limit short-term upside, such as regulatory changes and market volatility.
• Some updates retain neutral or hold recommendations, citing concerns about potential execution risks and the need for Iberdrola to deliver consistently on its ambitious expansion plans.
• There is ongoing scrutiny regarding possible headwinds from rising costs and macroeconomic uncertainties, which could impact profitability and capital returns.
• Valuation concerns remain for some analysts, who see recent price appreciation as already reflecting much of the anticipated growth.

What's in the News

• A GE Vernova wind turbine blade bent in half at Iberdrola's Flyers Creek wind farm in Australia following a storm in late June. The damaged blade was removed from service, with a replacement ordered and a return to service plan underway (Recharge News).
• Iberdrola announced a private placement of common shares, raising gross proceeds of €5,016,000 on August 22, 2025.
• The company has initiated and completed follow-on equity offerings totaling around €5 billion. This involved substantial ordinary share issuance under Regulation S and Rule 144A.
• Iberdrola is seeking to fully exit its power generation operations in Mexico. The company has hired Barclays to advise on a sale of remaining assets valued at approximately EUR 4 billion. This would follow a prior sale of the majority of its Mexican business to the government in 2024.

Valuation Changes

• Consensus Analyst Price Target has risen slightly from €16.14 to €16.32, reflecting modest optimism among analysts.
• Discount Rate remains unchanged at 7.49%, indicating stable assumptions about risk and capital costs.
• Revenue Growth projections have increased from 3.84% to 4.52%, suggesting an improved outlook for top-line expansion.
• Net Profit Margin has fallen marginally from 14.13% to 13.90%, which points to slightly lower profitability expectations despite the higher revenue forecast.
• Future P/E (Price-to-Earnings Ratio) has increased from 18.86x to 19.00x, which signals a modest uptick in valuation expectations for Iberdrola’s forward earnings.