EDF: Oddo BHF still a buyer, but adjusts target price
(CercleFinance.com) - On Monday, an analyst at Oddo BHF confirms a "buy" recommendation on the EDF group share, although has shaved a fraction off his target price, after figures for nuclear production came in below his initial expectations.
The broker says that it has adjusted its model to integrate the production differences relative to its estimates for 2019. In addition, it has cut its production estimate for 2020 to take into account an extended maintenance shutdown compared to initial estimates. The broker currently estimates 2020 production estimates at 386 TWh vs. 390 TWh previously. This is expected to reduce the group's EPS by 4% in 2019, followed by -2% on 2020, with no impact beyond this, Oddo BHF says.
As a result, it is shaving a fraction off its target price, which is currently 11.90 euros, vs. 12 euros previously. However, this slight adjustment still gives the share upside potential of 21%.
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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.
The broker says that it has adjusted its model to integrate the production differences relative to its estimates for 2019. In addition, it has cut its production estimate for 2020 to take into account an extended maintenance shutdown compared to initial estimates. The broker currently estimates 2020 production estimates at 386 TWh vs. 390 TWh previously. This is expected to reduce the group's EPS by 4% in 2019, followed by -2% on 2020, with no impact beyond this, Oddo BHF says.
As a result, it is shaving a fraction off its target price, which is currently 11.90 euros, vs. 12 euros previously. However, this slight adjustment still gives the share upside potential of 21%.
Copyright (c) 2020 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.