Elia Group Structurally Compelling

Goldman Sachs downgrades Elia Group to Neutral with a €150 price target, citing that while the company is a leader in European electrification, its current growth through 2028 is already priced in.

Key Takeaways

• 1.Elia Group downgraded to Neutral from Buy as recent share price performance has left limited valuation upside despite strong fundamentals.
• 2.The group's 2025-28 investment plan of €27 bn is expected to drive a industry-leading 15% EPS CAGR.
• 3.Growth is expected to normalize to mid-single digits post-2029 as current capex projects peak and visibility on future funding remains limited.

Table of Contents

• Structurally, a compelling story
• Yet, without further capex acceleration, growth could start normalising post-2029
• Near-term upside looks priced in: Down to Neutral
• Financials, valuation and key risks
• Financials
• Valuation methodology
• Key risks
• Disclosure Appendix

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