Barclays upgrades Endesa due to potential nuclear plant extensions

Barclays has upgraded Endesa SA, a Spanish electricity company, from “Equal Weight” to “Overweight.” The bank raised its price target by 9% to €26.4 per share. This upgrade is based on the possibility of extending the operations of nuclear plants in Spain. Analysts at Barclays predict that Endesa will benefit the most if the country decides to keep its nuclear plants running longer. The decision to extend the Almaraz 1 nuclear plant's life needs to be made by the end of 2025. Changes to the current plan would need approval from the Spanish government. Barclays believes that extending these plants would be beneficial for all parties involved. Consumers and the government would gain from more reliable energy supply and lower power prices. For energy companies, reducing nuclear taxes would encourage them to keep plants open. Despite some expected increase in spending, Endesa is likely to keep growing its dividends in the next three years. The company has a strong financial position, which supports this outlook. In contrast, Barclays maintained its “Equal Weight” rating on Iberdrola, raising its price target by 2% to €13.7. The firm believes this stock already reflects much of its renewable energy value. They also kept the same rating for Naturgy Energy, with a small price increase to €25.5, noting limited growth potential due to heavy reliance on gas networks.