Edison has issued a new valuation of EYDAP, incorporating the company’s prospects for geographical expansion following legislative changes in July 2026. The broker raises its indicative value for the shares to €14.2, from €11.4 previously, and sees potential for a valuation of €16.5 by 2029.
A key catalyst is the potential to absorb a total of 43 water providers, a development that, according to EYDAP, could expand its customer base by about 20%. The integration is expected to be completed by 1 January 2028. Edison estimates that the expansion scenario adds an indicative €2.8 per share to its valuation, while noting that the final benefit will depend on the terms of the acquisitions and the cost of integration.
The new regulatory framework also has a pivotal role in the company’s prospects. The regulated asset base (RAB) methodology took effect on 1 January 2026 and provides for an allowed return of 6.24%. EYDAP has launched an investment programme worth €2.8 billion, comprising about 181 projects, while the RAB is estimated to rise from about €700 million in 2025 to €1.6 billion in 2035.
Excluding the expansion, Edison forecasts annual growth of 2.2% in revenue, about 9.2% in adjusted EBITDA and about 2% in EPS over 2025-2029. It notes, however, that the shares have already risen by about 70% in 2026, surpassing the initial valuation of €11.4.