Engie: Citi a buyer - 'visible growth drivers'
(CercleFinance.com) - Citi has resumed its coverage of the French energy company Engie, with a buy rating on the share, highlighting visibility, which now offers growth to the group, analysts said.
The broker has set a target price of 16.7 euros.
After a massive 16 billion euro asset rotation program, according to Citi, Engie has "de-risked the business model from coal/hydrocarbon exposure," the broker says in a note, which anticipates 7% average annual growth in recurrent net income between 2018 and 2021.
In addition, as about 90% of EBITDA is now generated by contractualised or regulated activities, "Engie should be relatively immune to potential economic slowdown," Citi adds.
Finally, depending on the multiples used (2020 EV/EBITDA of 8x and P/E of 12x), the Engie share is trading at a discount of 8% to 16% relative to its European peers, the broker concludes.
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.
The broker has set a target price of 16.7 euros.
After a massive 16 billion euro asset rotation program, according to Citi, Engie has "de-risked the business model from coal/hydrocarbon exposure," the broker says in a note, which anticipates 7% average annual growth in recurrent net income between 2018 and 2021.
In addition, as about 90% of EBITDA is now generated by contractualised or regulated activities, "Engie should be relatively immune to potential economic slowdown," Citi adds.
Finally, depending on the multiples used (2020 EV/EBITDA of 8x and P/E of 12x), the Engie share is trading at a discount of 8% to 16% relative to its European peers, the broker concludes.
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.