🌎 30+ NEW AI-picked stock strategies for exciting international marketsUnlock Global AI Picks

EDP Renovaveis stock a ‘buy’ after 30% drop, says Jefferies

EditorEmilio Ghigini
Published 11/27/2024, 02:19 AM

EDRVF
-4.59%

On Wednesday, Jefferies upgraded EDP Renovaveis SA (ELI:EDPR:LI) (OTC: EDRVF) from Hold to Buy, adjusting the price target to €13.00 from the previous €15.50. The upgrade comes after a significant drop in the company's share price, which has declined by approximately 30% recently. Jefferies notes the current market conditions present an "upside-skewed risk-reward" for the renewable energy firm.

The analyst acknowledges the increased risks in the U.S. market following the recent elections but expresses confidence in EDP Renovaveis' growth outlook for the United States between 2024 and 2026. Despite the uncertainties, Jefferies maintains a positive perspective on the company's potential performance in the coming years.

Looking beyond 2027, the firm has adopted a more conservative stance regarding EDP Renovaveis' growth opportunities. However, the analyst believes that the situation remains manageable for the company, which specializes in renewable energy, particularly in wind and solar power generation.

Jefferies' updated stance on EDP Renovaveis reflects a belief in the company's ability to navigate the challenges ahead, particularly in the U.S. market, which is a key area for the company's expansion and growth. The new price target of €13.00, despite being lower than the previous target, indicates a belief in the company's value proposition and its prospects for recovery.

This upgrade by Jefferies signals a shift in market sentiment towards EDP Renovaveis, suggesting a potentially favorable investment opportunity as per the firm's analysis. The company's focus on renewable energy aligns with global trends towards sustainable and clean energy sources.

InvestingPro Insights

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

Recent InvestingPro data provides additional context to Jefferies' upgrade of EDP Renovaveis. The company's market cap stands at $11.99 billion, with a high P/E ratio of 155.21, reflecting investor expectations of future growth. This aligns with one of the InvestingPro Tips, which notes that analysts anticipate sales growth in the current year.

Despite the recent share price decline mentioned in the article, EDP Renovaveis maintains impressive gross profit margins, another key InvestingPro Tip. The company's gross profit margin for the last twelve months as of Q3 2024 was a robust 77.12%, indicating strong pricing power and efficient operations in the renewable energy sector.

However, investors should note that the stock is trading near its 52-week low, with a significant year-to-date price total return of -43.52%. This price movement supports Jefferies' view of an "upside-skewed risk-reward" scenario.

For a more comprehensive analysis, InvestingPro offers 13 additional tips for EDP Renovaveis, providing deeper insights into the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

EDRVF: A Bull or Bear Market Play?

Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks – 6 model portfolios fueled by AI stock picks with a stellar performance this year..

In 2024 alone, ProPicks' AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.

With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

So if EDRVF is on your watchlist, it could be very wise to know whether or not it made the ProPicks lists.

Unlock ProPicks now

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.