Engie: UBS upgrades to buy; raises target price
(CercleFinance.com) - This morning UBS upgraded its rating on the Engie stock to Buy (vs.
Neutral), having raised its corresponding 12-month target price from 13.2 euros to 15 euros, which now suggests upside potential of just over 10%.
Analysts list the reasons that have led them to change their stance on the stock. First, UBS says that, regarding difficulties the group is facing in Belgium with Electrabel's nuclear reactors; "the downside case for nuclear is now priced in". Conversely, this would not be the case for the upside potential linked to the group's exposure to renewable energies, a factor of growth and profitability that the market is struggling to identify.
Finally, "the regulated gas business (35% of group EV) is, in our opinion, trading at a hardly justifiable 0% premium to RAB (regulated asset base, ed.), which is below European peers," UBS says.
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.
Neutral), having raised its corresponding 12-month target price from 13.2 euros to 15 euros, which now suggests upside potential of just over 10%.
Analysts list the reasons that have led them to change their stance on the stock. First, UBS says that, regarding difficulties the group is facing in Belgium with Electrabel's nuclear reactors; "the downside case for nuclear is now priced in". Conversely, this would not be the case for the upside potential linked to the group's exposure to renewable energies, a factor of growth and profitability that the market is struggling to identify.
Finally, "the regulated gas business (35% of group EV) is, in our opinion, trading at a hardly justifiable 0% premium to RAB (regulated asset base, ed.), which is below European peers," UBS says.
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.