Redeia: big blackout displeases and Berenberg cuts target

Market Consensus Link Securities The idea of merging Redeia and Enagás sponsored years ago by the government of Rodríguez Zapatero has been redrawn from some technical governmental areas, the newspaper Expansión publishes today. At the time, it came to consider the union of both groups, because of its similarities and because it is key to the security of energy supply in Spain. The newspaper notes that the merger would allow a demonstration of …

The big blackout that Spain suffered on Monday 28 April has caused Berenberg analysts to cut their target price on Redeia to 16,70 euros from the previous 18,60 euros, although they maintain their recommendation to Maintain. In a note to customers to which Merca2 has had access, Berenberg analysts, Andrew Fisher and Louis Hudson, update their forecast on Redeia. In it they state that the sale of participation in Hispasat, recently agreed, marks …