Update shared on 26 Nov 2025
Fair value Increased 1.18%Analysts have raised their fair value estimate for REN, Redes Energéticas Nacionais SGPS, from €3.28 to €3.32 per share, citing improved revenue growth prospects and increased profit margins.
Analyst Commentary
Bullish Takeaways
- Bullish analysts highlight improved revenue forecasts for REN, driven by stronger than expected performance in key operational segments.
- The upgrade to Outperform is supported by increasing profit margins, suggesting enhanced cost management and operating efficiency.
- The new price target of EUR 3.80 reflects expectations of continued shareholder value creation and robust future cash flows.
- Analysts note that visibility on regulatory stability provides greater confidence in REN’s projected growth trajectory.
Bearish Takeaways
- Some analysts remain cautious regarding the company’s exposure to fluctuating energy prices, which could pressure margins in the medium term.
- There are concerns about potential capital expenditure requirements that may impact free cash flow and dividend policy.
- Execution risks persist around expansion initiatives, with a need for careful monitoring of ongoing project timelines and budgets.
Valuation Changes
- Fair Value per share has risen slightly, increasing from €3.28 to €3.32.
- Discount Rate remains unchanged at 7.03%, reflecting consistent risk assessments.
- Revenue Growth expectations have increased from 2.14% to 2.23%.
- Net Profit Margin has strengthened modestly, moving from 13.57% to 13.96%.
- Future P/E ratio has declined, dropping from 18.06x to 17.72x. This suggests improved earnings expectations relative to price.
Disclaimer
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