Endesa: shares rise after RBC upgrade.
(CercleFinance.com) - RBC Capital Markets upgraded Endesa from "underperform" to "sector perform," citing the stock's recent underperformance, while maintaining a target price of 20 euros for the shares.
In a research note sent to clients, RBC said that Endesa's recent underperformance was largely due to the Catalonia crisis in Spain, but also to weaker hydro power production and higher pool prices that hurt margins.
After the sell-off, the Spanish energy group's implied total return now reaches 13%, which puts it more in line with that of the STOXX Europe 600 Utilities index, at 10%, RBC said.
Endesa shares are currently up 0.3% at 19.05 euros, while Madrid's IBEX 35 index is down 0.3%.
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