E.On: Oddo confirms rating and target price

(CercleFinance.com) - Oddo confirms its Neutral rating on the E.
On share, along with its target price of 10.60 euros, highlighting ncertainties after the group's merger with Innogy.

After a meeting with E.On management, the main questions concern retail and company debt, the broker says. The review of npower's strategic options leads us to consider a number of scenarios and if need be, E.On has not ruled out the potential liquidation of this asset, Oddo adds.

The efficiency plan on energy supply in Germany will limit the pressure on margins. Meanwhile, there is a gradual transfer of clients over the coming years, while maintaining the rating seems a legitimate priority. The broker believes that this could lead to a reduction in investment efforts that will be detrimental to growth, Oddo says.


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