EDP SA

EDP: XLIS (PRT)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€3.00	Pxlvy	Zdxskqyl

EDP Earnings: Bottom Line Boosted by Lower Minorities; 2026 Targets Slightly Below Expectations

Tancrede Fulop

May 10, 2024

We confirm our EUR 5 fair value estimate after no-moat EDP released first-quarter results in line with the FactSet consensus, confirmed its 2024 guidance, and cut its 2026 financial targets after its subsidiary EDPR did so on May 9. The dividend policy—based on a floor of EUR 0.195 in 2024-25 and EUR 0.20 in 2026 with a target payout of 60%-70%—is maintained. Current price/earnings and dividend yield of 11.7 and 5.4%, respectively, reflect the material undervaluation of the shares.

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