Market PerformanceThe stock has outperformed the European Utilities sector by 17% over the previous year, but is now considered to be running out of runway for further near-term upside.
Price TargetA price target reduction from €15 to €14.5 reflects higher bond yields and lower power prices, which offsets increased network capital expenditure.
ValuationThe analyst's recommendation for Iberdrola has been downgraded to Equal-weight due to strong outperformance and premium valuation compared to the broader Utilities sector.