** Bernstein upgrades Portuguese utility company EDP EDP.LS to "outperform" from "market perform" on the undervalued assets

** In its view, EDP's Iberian assets and renewables are trading at low multiples, while the growth potential in U.S. renewables remains "sound"

** "Our analysis suggests that the share price is factoring in just one year of growth in renewables and low multiples for Iberian networks/hydro assets," it says

** Bernstein also adds that the stock has overreacted to the potential consequences of the U.S. election outcome and the cut to EDPR's EDPR.LS 2024 targets

** Despite the upgrade, the analyst notes that catalysts, such as visibility on U.S. energy policy and reduced interest rates in Brazil, are needed for the stock to perform

** It cuts the target price by almost 8% to 4.15 euros per share

** Up to the previous session's close, shares were down 25%​ YTD

** Out of 21 analysts that cover EDP, 18 rate the stock "strong buy" or "buy," and ​three rate "hold"

(Reporting by Marta Serafinko)

((Marta.Serafinko@thomsonreuters.com; +48 58 769 66 00;))