EDP Renovaveis Sets 2026 Guidance in Line With Our Estimate, Plans a EUR 1 Billion Rights Issue

We are currently maintaining our fair value estimate of EUR 22 for no-moat EDP Renovaveis after it has released its 2023-26 business plan with financial targets in line with our estimates. The firm plans to finance EUR 1 billion of its intended EUR 20 billion gross investments between 2023 and 2026 with an equity offering. The price range for the offering is slightly below our fair value estimate (EUR 19.25-EUR 20.5), but we do not anticipate this will materially affect our fair value. Shares are in 3-star territory, meaning there is not enough margin of safety to buy them at the current share price.