Iberdrola SA
IBE: XMAD (ESP)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| €66.00 | Bmnkv | Vxtgczn |
Iberdrola Has a Better Earnings and Dividend Outlook Than Most Peers
Business Strategy and Outlook
Iberdrola is the second-biggest integrated utility in Europe after Enel. Besides its domestic Spanish market, Iberdrola has strong exposure to the United Kingdom since the acquisition of Scottish Power in 2007. It is the European utility with the largest exposure to the United States thanks to its wind development and the acquisition of UIL in 2015. Its US assets are grouped in 81.5%-owned Avangrid. In March 2024, Iberdrola proposed to acquire the rest of Avangrid for $34.25 per share, just above our fair value estimate of $33 at the time. We expect the deal to be completed at $36 by the end of 2024.