XM does not provide services to residents of the United States of America.

GS cuts EDP on delayed growth, high leverage

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>BUZZ-GS cuts EDP on delayed growth, high leverage</title></head><body>

** Goldman Sachs downgrades EDP EDP.LS to "neutral" from "buy", despite a brighter outlook for renewable energy returns and potential for stronger FCF under its new investment plan

** The broker says its EPS estimates imply no bottom-line growth until 2027 for Portugal's largest utility firm, compared to 2024 in previous projections

** This is due to the normalisation of hydro production and an expected gradual decrease in power prices, it says

** Even though GS values the reduction in capex and increase in FCF, it expects EDP's leverage to remain higher than peers'

** Out of 21 analysts that cover EDP, 17 rate the stock "strong buy" or "buy", ​three "hold" and one "sell" - LSEG

** EDP's shares fall around 2.5% in morning trade

Reporting by Marta Serafinko


Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.