E.ON: Jefferies upgrades stock
(CercleFinance.com) - On Monday Jefferies upgraded its "underperform" rating on the E.
ON share to "hold," noting the recent 15% fall n German electrician's share price.
The US broker points out that it adopted a negative rating on the share last February, due to a string of fears relating to the group's results and balance sheet.
While it believes that E.ON's prospects are still not particularly flashy, Jefferies notes that the recent reductions in the consensus' forecasts better reflect the challenges the group faces.
Moreover, while the energy group debt remains colossal, this problem could be solved through a number of divestments, it adds.
The broker has a new target price of 7.8 euros, which reflects downside potential limited to 5% relative to the share's current price.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
ON share to "hold," noting the recent 15% fall n German electrician's share price.
The US broker points out that it adopted a negative rating on the share last February, due to a string of fears relating to the group's results and balance sheet.
While it believes that E.ON's prospects are still not particularly flashy, Jefferies notes that the recent reductions in the consensus' forecasts better reflect the challenges the group faces.
Moreover, while the energy group debt remains colossal, this problem could be solved through a number of divestments, it adds.
The broker has a new target price of 7.8 euros, which reflects downside potential limited to 5% relative to the share's current price.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.