Iberdrola downgraded to sell at Goldman Sachs

LONDON (MarketWatch)
Goldman Sachs on Tuesday downgraded Spanish utility Iberdrola SA to sell from neutral, saying the group's current valuation does not reflect the high risk of intervention in electricity markets.
"We expect a combination of higher pool prices and the need to eliminate the structural electricity deficit in Spain to put significant pressure on domestic tariffs. In the context of high unemployment, a fragile economy, and general elections in Spain, we believe the risk of intervention in the system to balance the electricity deficit remains material," the broker said