Goldman upgrades Iberdrola on earnings growth and grid investment outlook

Goldman Sachs has upgraded Iberdrola to a "buy" from "neutral" and increased its price target to €25, reflecting stronger earnings growth and dividend potential. The brokerage expects Iberdrola's earnings to grow at a compound annual rate of about 10% between 2026 and 2031, with capital spending of approximately €100 billion over the same period, primarily focused on power grids and wind farm repowering in the U.S. and Britain.

Goldman's valuation implies a double-digit premium to peers for Iberdrola on both enterprise value to earnings and price-to-earnings measures for the 2026-30 period.

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