Engie: Oddo BHF says offers attractive yield
(CercleFinance.com) - Oddo BHF reiterates its "buy" recommendation on the Engie share, along with its target price of 16 euros, deeming that the share's yield of 5.
6% is attractive, noting that this is 70 basis points above peers, which the group finances by its cash flow.
Taking into account the acquisition of TAG, the broker estimates that the CAGR of 2019-20 EPS should be at the top of its indicative range of 7%-9%, which it says compares very well with the sector's expected average EPS growth of 7%.
In these circumstances, while the share of the energy group is still trading at a discount of 15% compared to the sector in terms of P/E n+1, Oddo BHF believes that its discount relative to the index should fall.
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.
6% is attractive, noting that this is 70 basis points above peers, which the group finances by its cash flow.
Taking into account the acquisition of TAG, the broker estimates that the CAGR of 2019-20 EPS should be at the top of its indicative range of 7%-9%, which it says compares very well with the sector's expected average EPS growth of 7%.
In these circumstances, while the share of the energy group is still trading at a discount of 15% compared to the sector in terms of P/E n+1, Oddo BHF believes that its discount relative to the index should fall.
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.