Oddo BHF maintains its 'outperform' rating on Iberdrola shares, with a target price of 13.8 euros.

Iberdrola announced yesterday that its 81.5%-owned US subsidiary Avangrid had terminated its merger agreement with PNM Resources after rejecting the latest attempt to extend the deadline for finalizing the project.

As a reminder, Avangrid had proposed to acquire PNM Resources in 2020 for an enterprise value of E7 billion, with a further E2 billion to be invested in renewable projects.

We consider that this decision reflects, once again, the pragmatism of the Group's strategy in the face of the administrative and political difficulties encountered since the launch of this operation", believes the analyst.

For Oddo BHF, the reallocation of these financial resources to projects, including those in the U.S., which have already been identified, is 'good news which, moreover, will remove the risk of an Avangrid capital increase'.

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