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EDP: Capital Markets Day Will Support Stronger Outlook For Profits

Analysts Lift EDP Price Target as Profit Margins and Revenue Outlook Improve

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EDP
AnalystConsensusTarget
Not Invested
Published 12 Jan 2025

Update shared on 05 Dec 2025

Fair value Decreased 0.90%
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AnalystConsensusTarget's Fair Value
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1Y
18.4%
7D
-2.4%

Analysts have modestly reduced their price target for EDP, citing a slightly lower fair value estimate and profit margin outlook that only partially offsets improving revenue growth projections and a marginally cheaper future earnings multiple.

What's in the News

  • EDP has scheduled a Capital Markets Day for 2025, signaling upcoming updates on strategic priorities and financial targets (Key Developments).

Valuation Changes

  • The fair value estimate has edged down slightly from €4.50 to €4.46 per share, reflecting a modest reassessment of intrinsic value.
  • The discount rate remains unchanged at 7.03 percent, indicating no revision to the assumed cost of capital.
  • Revenue growth expectations have shifted from a slight contraction of approximately 0.4 percent to positive growth of about 0.7 percent, signaling a more optimistic outlook for the top line.
  • The net profit margin has eased slightly from 8.44 percent to 8.22 percent, pointing to marginally lower profitability assumptions.
  • The future P/E multiple has decreased from 17.19x to 16.92x, implying a slightly lower valuation on forward earnings.

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