EDF: some profit taking after a 13% weekly gain
(CercleFinance.com) - The EDF stock has risen by nearly 13% in a week and has been subject to profit taking for the past two sessions.
On Thursday, UBS, which has a buy recommendation on EDF shares, raised its target price for them from 15 euros to 16 euros to take into account the positive effects linked to ARENH.
This acronym - which represents regulated access to historical nuclear electricity - lets alternative suppliers to obtain electricity from EDF under conditions set by the public authorities.
In order for its clents to benefit from this system, EDF replicates it in its offers. When market prices are high, the ARENH scheme is often the best solution, since part of the electricity price is then calculated according to the conditions determined by the ARENH.
According to UBS forecasts, the scheme - which the broker believes could be activated as early as December - could increase EDF's operating profit (Ebitda) by 1 billion euros in 2022, to 3 billion euros, subject to future demand and prices.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
On Thursday, UBS, which has a buy recommendation on EDF shares, raised its target price for them from 15 euros to 16 euros to take into account the positive effects linked to ARENH.
This acronym - which represents regulated access to historical nuclear electricity - lets alternative suppliers to obtain electricity from EDF under conditions set by the public authorities.
In order for its clents to benefit from this system, EDF replicates it in its offers. When market prices are high, the ARENH scheme is often the best solution, since part of the electricity price is then calculated according to the conditions determined by the ARENH.
According to UBS forecasts, the scheme - which the broker believes could be activated as early as December - could increase EDF's operating profit (Ebitda) by 1 billion euros in 2022, to 3 billion euros, subject to future demand and prices.
Copyright (c) 2021 CercleFinance.com. All rights reserved.