** BofA Global Research upgrades Spanish power company Naturgy NTGY.MC to "buy" from "neutral", saying a cleaner shareholder base unlocks balance-sheet optionality while a 6–7% dividend yield provides strong downside protection

** "We see leverage below <2.5x by 2030, implying over €7-9bn to be redeployed. The key hurdle to this - a split shareholder base - is diminishing as GIP/BlackRock have now fully exited and CVC could follow suit soon," it says

** BofA also sees organic upside potential to EPS, citing more favourable gas regulation in Spain, gas trading upside amid the global energy crisis, and Spanish power prices being over 30% higher since the Iran conflict

** The broker calls Naturgy's balance sheet "one of the healthiest" in its coverage universe, adding that at a roughly 20% PE discount to the sector, the shares price in neither near-term earnings upside nor medium-term optionality