Uniper: shares slide after RBC downgrade.
(CercleFinance.com) - Uniper shares are down almost 2% on Wednesday after RBC Capital Markets analysts downgraded the stock, while raising their target price.
Although RBC thinks that the German energy group could be a major beneficiary of carbon reforms and has an attractive forward dividend yield, the brokerage firm says it is unable to justify any further increase to its new target price of 21.5 euros, and is therefore downgrading the shares from "outperform" to "sector perform."
"We believe the market already assumes some element of an M&A premium within the Uniper share price with Fortum and RWE often cited (...) as potential acquirers," RBC analysts wrote in a report sent to clients.
"However, we do not think a third party acquisition is a foregone conclusion," RBC said.
This downgrade sent Uniper shares down 1.9% to 20.4 euros in mid-morning trading on Wednesday on Germany's XETRA market.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
Although RBC thinks that the German energy group could be a major beneficiary of carbon reforms and has an attractive forward dividend yield, the brokerage firm says it is unable to justify any further increase to its new target price of 21.5 euros, and is therefore downgrading the shares from "outperform" to "sector perform."
"We believe the market already assumes some element of an M&A premium within the Uniper share price with Fortum and RWE often cited (...) as potential acquirers," RBC analysts wrote in a report sent to clients.
"However, we do not think a third party acquisition is a foregone conclusion," RBC said.
This downgrade sent Uniper shares down 1.9% to 20.4 euros in mid-morning trading on Wednesday on Germany's XETRA market.
Copyright (c) 2017 CercleFinance.com. All rights reserved.