Endesa, pending the European Funds, with potential of 16%
Endesa wants to achieve the greatest possible impact from the hand of the European Recovery Funds, which, in its opinion, will give a decisive boost to the activity and will also serve to achieve the medium-term objectives sooner. Its CEO, José Bogas, highlights that Endesa has presented 110 projects worth 19,000 million euros and if it reached a financing of 25% and the selection of them took place, the company would have up to 5,000 million euros to carry them out.
They are based on renewable projects, like the ones the company is currently implementing. Among the latter, the one that is being pioneered in Teba, Malaga and Carmona, Seville to analyze the energy consumption of municipal buildings. In both, it is building two photovoltaic plants, through its subsidiary Enel Green of 50MW each.
It is also a pioneer in the application of the so-called “agrivoltaica”, the conjunction between solar energy and agriculture. It is about returning the use of renewable land to the primary sector with crops ranging from broccoli to cauliflower, through red pepper, aubergine or zucchini. And they do it in their photovoltaic plants in Murcia, Extremadura and Andalusia.
In its quotation graph we see how the value remains in equilibrium with the market after recovering 8.50% in the last twenty sessions despite the falls registered in the last two for the value. Barely 2.5% separate you from your exercise highs. As for recommendations, the last one is that of JPMorgan, which gives it an upside price target of 25.8 euros per share and a potential of 16%.
Endesa price analysis
María Mira, fundamental analyst of Investment Strategies highlights that “based on a comparison and valuation by ratios and with an estimated EPS for the end of 2021 of 1.7 there is room to improve the price. Endesa trades at a PER of 13v, compared to an average for selective companies that exceed 30v; if we take into account the EPS growth forecast, the PEG ratio stands at very moderate levels and shows a clear undervaluation of Endesa’s securities ”.
In addition, the fundamental expert of Ei highlights that “it is also positioned among the companies with the highest yield on dividend in the Spanish selective: Yield of 9%, compared to an average for the Ibex 35 of 2.5%. The return on equity (ROE) also stands out, which exceeds 23.6%. Based on our fundamental valuation we are positive with the value in the medium / long term ”.
Fundamental analysis Endesa
According to Ei’s premium technical indicators, Endesa achieves, with a slight improvement and in rebound mode, a total score of 4.5 out of 10 possible points. With a medium-term uptrend and long-term bearish trend. Also mixed shows the total moment, the fast is positive while the slow is negative for the value. As for the volume, it shows increasing in the medium term but decreasing in the long term and the volatility of the value, decreasing in the medium and increasing in the long term. In other words, the medium-term parameters are positive and those corresponding to the long-term negative for Endesa.
For José Antonio González, technical analyst of Investment Strategies “after achieving the strictest short-term consolidation above its 40-period or medium-term simple moving average, the price attacks the 200-period or long-term simple moving average, attacking in turn the resistance zone comprised around 22.92 / 22.29 euros per share, the overcoming of which makes it possible to attack the significant resistance zone of 24.60 / 24.40 euros per share ”.
Endesa on daily chart with average amplitude range in percentage, MACD oscillator and trading volume
Endesa technical analysis
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