07:26 AM EDT, 04/30/2026 (MT Newswires) -- BofA Global Research raised its price objective and earnings forecasts for Iberdrola (IBE.MC) after the Spanish energy company's solid first-quarter performance.

"Iberdrola's 1Q26 results demonstrated strong growth momentum, with adjusted net income +11% y/y, driven by robust 9% EBITDA growth in Networks. We lift EPS and [price objective], reflecting an improved outlook for 2026, and our expectation that Iberdrola will re-accelerate renewable deployment over the medium term. While its shares have underperformed the sector this year, we see an opportunity to revisit given its defensive characteristics, married with scope for further EPS upgrades. Indeed, it remains one of the highest quality compounders in our coverage, with 6.4% 2026-30E EPS [compound annual growth rate] and 3.6% 2026E dividend yield,"according to a Thursday note.

As Iberdrola raised its full-year 2026 adjusted net income guidance to at least 8% growth, from 6% previously, the research firm boosted its adjusted net income estimate to 6.74 billion euros, representing an 8.1% annual increase, with room for further upgrades on sustained high gas costs and hydro strength.

Within this context, analysts raised the buy-rated stock's price objective to 21.50 euros from 19.80 euros, accounting for a 35% increase in anticipated renewable capacity additions starting in 2029. BofA noted its estimates do not factor in possible gains from artificial intelligence-related efficiencies and rising European power demand, which could drive its estimates higher.