EDF: Jefferies optimistic before quarterly trading update
(CercleFinance.com) - Jefferies maintains a buy rating on the EDF share ahead of the group's forthcoming quarterly trading update on 9 May.
According to analysts, EDF should reassure investors with this update, and they maintain their target price for the share at 13.5 euros.
The first argument developed by analysts is that after exceptional shutdowns in 2017, the group's hydraulic production (which should have recovered by 31% in Q1, estimates Jefferies) and that of nuclear energy (+4% in Q1, again according to analysts) should improve, as from the start of the year.
In addition, Jefferies considers that the Nuclear Safety Authority's investigation regarding forged parts at the Creusot plant is proving to be "encouraging". Authorisations for recommissioning should boost nuclear production over the year.
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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.
According to analysts, EDF should reassure investors with this update, and they maintain their target price for the share at 13.5 euros.
The first argument developed by analysts is that after exceptional shutdowns in 2017, the group's hydraulic production (which should have recovered by 31% in Q1, estimates Jefferies) and that of nuclear energy (+4% in Q1, again according to analysts) should improve, as from the start of the year.
In addition, Jefferies considers that the Nuclear Safety Authority's investigation regarding forged parts at the Creusot plant is proving to be "encouraging". Authorisations for recommissioning should boost nuclear production over the year.
Copyright (c) 2018 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.