EDP Earnings: 2024 Guidance Set in Line With Expectations, Shares Materially Undervalued

We maintain our EUR 5.8 fair value estimate after no-moat EDP released solid 2023 results that were in line with guidance and set its 2024 recurring net profit guidance in line with our and FactSet consensus. The group will pay a EUR 0.195 dividend on 2023 results, in line with the 2023-26 strategic plan and implying a 5.3% yield. This is the first dividend increase since 2016. EDP is significantly undervalued despite an exposure to falling power prices that is below peers.