DB raises Iberdrola to 'buy' expecting double-digit profit growth

** Deutsche Bank upgrades Spanish utility company Iberdrola IBE.MC to "buy" from "hold" as it expects double-digit earnings growth to run until 2028

** "2026 guidance will almost certainly be upgraded at the Q3s, with Iberdrola's March 2027 Strategic Plan update likely to be a positive catalyst," DB says

** The brokerage raises Iberdrola's PT by 19% to €22 to reflect higher power prices and a strengthening near-term growth profile

** DB notes that while the firm trades at a premium to the wider sector, it remains justified by a "best-in-class long-term track record" with its premium to direct peers at the lowest for some time

** However, recent reports of potential power price caps in Spain and in the UK, coupled with the focus on affordability in the US, "could prove negative for Iberdrola," DB says

** Including the session's rise, the stock has gained 15.2% YTD