EDF: UBS raises target price
(CercleFinance.com) - On Thursday, UBS, which has a buy recommendation on EDF shares, nudged up its target price for them from 15 euros to 16 euros to take into account the positive impact stemming from the ARENH benefit.
This system - which stands for "regulated access to historical nuclear electricity" - allows alternative suppliers to obtain electricity from EDF under conditions set by the public authorities.
In order for its customers to benefit from this system, EDF replicates it in its offers. When market prices are high, the ARENH scheme is often the best solution, as part of the electricity price is then calculated according to the conditions determined by the ARENH.
According to UBS forecasts, this scheme - which the broker believes could be activated as early as December - could increase EDF's Ebitda by 1 billion euros in 2022 (to 3 billion euros), subject to future demand and prices.
However, the share is currently down 1.3% at about 12.1 euros.
Copyright (c) 2021 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.
This system - which stands for "regulated access to historical nuclear electricity" - allows alternative suppliers to obtain electricity from EDF under conditions set by the public authorities.
In order for its customers to benefit from this system, EDF replicates it in its offers. When market prices are high, the ARENH scheme is often the best solution, as part of the electricity price is then calculated according to the conditions determined by the ARENH.
According to UBS forecasts, this scheme - which the broker believes could be activated as early as December - could increase EDF's Ebitda by 1 billion euros in 2022 (to 3 billion euros), subject to future demand and prices.
However, the share is currently down 1.3% at about 12.1 euros.
Copyright (c) 2021 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.