On Monday, RBC Capital adjusted its outlook on Iberdrola SA (IBE:SM) (OTC: OTC:IBDRY), raising the stock's price target from EUR12.50 to EUR13.00, while reaffirming an Outperform rating.
The revision follows the company's recent Capital Markets Day, where Iberdrola outlined its financial strategy, emphasizing a continued focus on network investments and a conservative approach to leverage.
The analyst from RBC Capital expressed that the financial guidance provided by Iberdrola during last week's presentation met their expectations. The company's commitment to its strategic direction, particularly in the area of network investments, was anticipated and aligns with its historical approach to business growth and risk management.
Notably, Iberdrola's performance exceeded the analyst's projections and also surpassed the broader market consensus. This outperformance was highlighted as a particularly positive sign in the current market environment, where such positive surprises are not common.
The revised price target to EUR13.00 reflects the analyst's confidence in Iberdrola's ability to maintain its strong financial position and deliver on its strategic initiatives. The Outperform rating suggests that RBC Capital expects Iberdrola's stock to perform better than the average return of the stocks the firm covers over the next 12 to 18 months.
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