Leading the energy transition - growth in renewables driven by asset rotation

This Master Thesis takes the form of an Equity Research report of EDP, being the end goal to develop a recommendation to investors. It is relevant to underline that this report is inserted in a two parts report. In this part, it was made a full and comprehensive analysis of EDP, its sector and competitors and the main parameter driving the company’s value and risks. Moreover, the highlights include the step-up green growth of EDP, driven by lower costs and government incentives. To get to a price target, it was used a SOTP method with the businesses valued on a DCF basis. Our valuation for EDP yields a price of €6.44 for FY21, which reflects an upside potential of 42%, compared to the current market price and consequently a BUY recommendation