Goldman Sachs, Sabadell axe price targets for EDP Renovaveis
Oct 28, 2011 - Goldman Sachs and Sabadell have reduced their share price targets for Portuguese green power company EDP Renovaveis (ELI:EDPR), following the earnings release.
Goldman Sachs cut the company's target to EUR 5.35 from EUR 5.50, reiterating its "neutral" recommendation. Sabadell, on the other hand, axed the price target to EUR 5.06 from EUR 6.77. The broker's stance on the stock is "buy".
Sabadell considers the average capital risk of EDP Renovaveis will increase. The firm's earnings came in line with the broker's expectations. Sabadell commented that the successful completion of the privatisation of parent power utility EDP (ELI:EDP) can boost the probability of a buyback move. EDP now controls 77.5% of EDP Renovaveis.
Goldman Sachs, in turn, downgraded slightly its earnings projections for the green energy company. EDP Renovaveis will lower the wind farm construction while the investment costs will rise, the broker forecast.
At 0847 local time today, shares in EDP Renovaveis were falling 0.27% to EUR 4.388 on Euronext Lisbon.