Iberdrola presents a new potential of 24%

Iberdrola presenta un nuevo potencial del 24%

Iberdrola maintains those continuous advances that began in the first days of October from the lowest level for the year, from which it already recovers a more than remarkable 20% due to that double-loop effect that occurred as a result of the government’s Royal Decree Law on harmful measures for Iberdrola and other utilities to cut the price of electricity.

And is that a greater effect on the accounts was expected, which in the end has not occurred and will not occur, because it must be remembered that the effect of the regulations will be seen with special emphasis in the next quarterly results. Even so, from Sabadell it is indicated that the changes approved a week ago in the Council of Ministers that modify the initial heading, will cancel part of the impact and it will be less than 2% in the specific case of Iberdrola.

Thus, the value moves in the market with substantial advances, exceeding 17% in the last 20 trading sessions, four of them above the level of 10 euros per share, while minimizing annual losses that still reach 8.5%.

Although there is also more small print, as the greater government control if the companies do not establish the prices of electricity with transparency and their contracts with the companies’ clients, through fines and possible effect on the delivery of European funds that must be channeled from Moncloa.

However, the truth is that analysts read in their results an improvement in expectations for the value, which had been placed with double-digit drops, among the worst of the year on the Ibex. In fact, after the accounts, Alantra recommends a purchase with 13.07 euros per share, Barclays improves significantly, to 14.2 euros by title and overweight the value, Citigroup leaves its PO at 11 euros with buy bet and, finally, Goldman Sachs places its target price at 13 euros and buys the security.

On average, among the last four recommendations, between the best from the British bank and the lowest from the American one, we find an average target price of 12.81 euros per share that gives Iberdrola a potential in the market that reaches 24%.

2 are the points in which Iberdrola improves out of the 10 possible if we pay attention to the premium technical indicators prepared by Investment Strategies. The value is shown with an upward trend in the medium term and a long downward trend, with a negative total moment, both slow and fast for the value, while the volume of business is decreasing in Iberdrola in both aspects. Finally, its volatility continues to grow in the medium and long term as well.

Iberdrola, Ei technical analyst José Antonio González tells us “It keeps alive the very strong upward momentum, which consolidates above first resistance, as well as its 40-period simple moving average or medium term. In this way, the price approaches the background decreasing guideline, which is an approximation to its 200-period simple moving average or long-term, the overcoming of which would begin to impact on its decreasing structure in recent months with a target of 10.87 euros per share ”.

Iberdrola on daily chart with average amplitude range in percentage, MACD oscillator and trading volume

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