Banks raise CPFL Energia targets up to R$ 53

Itaú BBA raised its price target for CPFL Energia shares from R$ 45.90 to R$ 52.50, maintaining an outperform recommendation. At the same time, Bradesco BBI lifted its price target from R$ 45 to R$ 53, but kept its neutral rating on the stock.

Itaú BBA views CPFL Energia as a key defensive choice in Brazil's electric sector, supported by steady cash flow, a healthy capital structure, and appealing dividends. The bank pointed to an investment plan of approximately R$ 31 billion over the next five years. That strategy focuses on expanding the regulatory asset base (RAB) across its distribution utilities, boosting regulated revenues and earnings predictability.

Bradesco BBI noted favorable growth and distribution prospects, but warned that current valuation already prices in much of that upside and trades at a premium to peers. Even so, Bradesco BBI expects EBITDA growth to accelerate between 2027 and 2028, driven by tariff reviews at distributors Paulista, Piratininga, and RGE, as well as Aneel's new regulatory X-Factor methodology.

Both institutions highlighted CPFL Energia as a strong income generator. Bradesco BBI projects an annual dividend yield between 8.5% and 11% from 2026 to 2030, while Itaú BBA expects high dividends to continue alongside its capital plan due to controlled leverage.