AlphaValue/Baader Europe Lifts EDP Price Target Ahead of Autumn/Winter Season
AlphaValue/Baader Europe raised its price target for EDP (EDP.LS), saying the energy group is one of the "best-positioned" stocks in its coverage as Europe heads into the autumn and winter season "dangerously short" of gas supplies."Against that backdrop, we see EDP's profile as precisely the one that benefits. Iberian gas storage is comfortable (Spain c.74%, Portugal c.90%) and Portuguese hydro reservoirs sat near 84% in late August per the environment agency APA, well above seasonal norms, a strength both EDP and Iberdrola [IBE.MC] flagged at their H1 2026 results in July," analysts said Wednesday. "EDP therefore enters autumn/winter with a hydro-heavy, low-carbon generation base and more limited direct gas exposure.""We see this mix of downside resilience and upside leverage to a tight, high-priced market as what makes EDP a top sector pick. The main caveat is obviously the weather, as a mild, wet and windy winter would compress spreads and narrow the relative advantage. On today's setup, however, we believe the risk-reward clearly favours EDP," the note said.Accordingly, the research firm boosted the add-rated stock's price target to 5.96 euros from 5.78 euros.
