Analyst Note| Tancrede Fulop, CFA |
Endesa held its 2021 capital market day during which it maintained its 2022 and 2023 targets on the bottom line and set its 2024 target above ours. The company does not incorporate any CO2 clawback, assuming it will be significantly amended in line with the gas clawback. This looks too optimistic to us. That said, we would tweak upward our fair value estimate of EUR 21.2 on higher power prices even if we continue to price in the CO2 clawback. The company confirmed its 2022 and 2023 dividends of EUR 1.2 and EUR 1.3 and set a 2024 dividend flat at EUR 1.3, implying a juicy 6.6% yield.