Suez: Citi remains neutral after strategic plan
(CercleFinance.com) - Analysts at Citi maintain their neutral rating on the Suez share, which was badly hit yesterday (-7%) after the presentation of its strategic orientations over the medium term: they have a corresponding target price of 14.
5 euros.
"Suez moving in the right direction; dividends should follow," the broker says in its research note, which distinguishes the Suez plan for the emphasis that it puts on cash generation and savings, which are higher than expected. As a result, earnings are expected to increase by 10.9% over 2019-2025. Cash flow would also be upbeat, which would clean up the group's balance sheet and ultimately enable it to increase its dividend pay-out.
As a result, the 20% premium (in terms of P/E) at which the Suez share is trading relative to the European utilities sector is "fully justified," Citi believes, even though the target represents upside potential of just 7.5%.
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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.
5 euros.
"Suez moving in the right direction; dividends should follow," the broker says in its research note, which distinguishes the Suez plan for the emphasis that it puts on cash generation and savings, which are higher than expected. As a result, earnings are expected to increase by 10.9% over 2019-2025. Cash flow would also be upbeat, which would clean up the group's balance sheet and ultimately enable it to increase its dividend pay-out.
As a result, the 20% premium (in terms of P/E) at which the Suez share is trading relative to the European utilities sector is "fully justified," Citi believes, even though the target represents upside potential of just 7.5%.
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.