BofA Keeps EDP Renováveis at Underperform on 'Fuller' Valuation; Price Objective Up

03:05 AM EDT, 08/19/2026 (MT Newswires) -- BofA Global Research reiterated its underperform rating on EDP Renováveis (EDPR.LS), with analysts saying they "struggle on valuation" even as they see upside potential in the midterm outlook. "EDPR trades on 14x 2026E EBITDA adjusted for non-cash tax credits for 5-7% EBITDA [compound annual growth rate] to 2030E, compared to clean energy transition peers on 11x with 17% growth near-term. As such, we see valuation fuller at the renewable subsidiary," the research firm said Tuesday. Meanwhile, analysts raised their price objective to 11.5 euros from 9.5 euros, noting they see 15% downside potential for the stock. "Management upgraded 2026 guidance for the second time this year, with better performance from asset rotations at the EDPR level, better power prices and performance for flexibility in the integrated business, and better returns and foreign exchange in networks. All these bode well for 2027+," the note said. Beyond 2026, BofA believes the Portuguese renewable energy company is primed for growth through anticipated stronger capital gains, expanded capacity potential, better-than-expected load factors, and macro tailwinds across hydro, power pricing, and Brazilian foreign exchange, among others.