Tuesday, July 5

Iberdrola focuses on the United States after the failure of PNM

It is one of the reference markets for Iberdrola and its subsidiary in the United States, named Avangrid, was destined to be the third renewable operator in the country with a market value that would exceed 20,000 million dollars.PBut finally, the purchase operation of the New Mexico power company PNM Resources will not take place, after the judicial veto of the operation, among other reasons, due to the reputational damage for Iberdrola in the Villarejo case.

An operation of 7,142 million euros, the largest of the Spanish electricity company in that country, with the future idea of ​​becoming Iberdrola as the world’s largest renewable energy company. This will not be the case, although the operation can be appealed, jointly with the QIA, the Qatar Investment Authority, the sovereign fund of the Arab emirate which, in turn, owns 8.694% of Iberdrola and which it converts, above 3.11% of Norges Bank and 5.25% of BlackRock, the first shareholder of the energy company in our country.

But the truth is that the bad news has just been covered with another good one: the award of one of the largest wind farms in the United States with investments that they will overcome, on the east coast of the country, the 3,550 million euros.

It is the third largest offshore wind farm in the state of Massachusetts, in a 1,232 megawatt project, which will create 11,000 jobs and with which it hopes to supply 750,000 homes. With this operation, Iberdrola will have invested almost 13,400 million euros in the United States in 8,000 megawatts of onshore and solar wind and the leadership, according to the company, in offshore wind.

In its quotation graph we see that the value is still far, 5% specifically from recovering the levels prior to the impact, on November 26, of the arrival on the market of the omicron variant, and after losing the 10 euros per action, that level has not recovered. Maintains cuts of 3% almost in the last month listed and the falls deepened in the year to 13.5% of its price.

Iberdrola annual price of the security

However, there is a new setback on the horizon, because a little over a month ago, the citizens of the state of Maine, on the border with Canada they voted against an electric transmission line with the neighboring country by an Iberdrola subsidiary with an investment of 820 million euros. Now a judge in the area has rejected the precautionary measures requested by the company to continue with the construction, which is now paralyzed.

In this month December only one signature, Bank of America Merrill Lynch has improved its recommendation on Iberdrola, with purchase advice on the stock market value and a target price of 13.1 euros per share, with what the US entity grants a bullish run of 35%.

The technical analyst of Investment Strategies, José Antonio González affirms that Iberdrola “stagnates in the short term, oscillating around its 40-period simple moving average or the medium term, after showing itself unable to resolve upwards of 10,334 / 10,294 euros, as well as its simple moving average of 200 periods or long term. In this way, we monitor the maintenance of the support of 9,618 euros per share, whose violation would consolidate a downward turn from the upper band of contracting of a broad downward channel in the background ”.

Iberdrola on daily chart with average amplitude range in percentage, MACD oscillator and trading volume

Iberdrola technical analysis of the value

And we finish with the technical indicators of Investment Strategies that mark a drop of two points for Iberdrola until reaching only 1 of the 10 possible for the value, with positive business volume, growing for Iberdrola in the medium term.

The rest, medium and long-term downtrend for the value, total moment, both slow and fast negative, decreasing long-term business volume and the volatility of the value, its amplitude range that, in its two aspects, both in the medium and long term, is increasing for Iberdrola.

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