GS cuts Endesa to 'sell' on expected earnings upgrade cycle nearing its end

** Goldman Sachs cuts rating on Spanish power utility Endesa ELE to "sell" from "neutral"

** GS highlights the consistent strong results from a geographically constrained portfolio, but thinks the company may be nearing the end of EPS revision cycle

** "We see the earnings upgrade cycle soon coming to an end following what we currently see as 'peak integrated margins' in electricity, and in light of what we view as already-elevated expectations on the upcoming regulatory review in power distribution," it says

** It believes a normalization in power prices and retail margins should lead to negative earnings growth post 2026, seen as a "peak EPS" year by the broker, and adds the valuation already seems to reflect high expectation

** The stock, which up to the previous session's close was up 28.3%​ YTD, is the worst performer on Madrid's blue-chip index Ibex 35 IBC