SSE: Morgan Stanley upgrades stock
(CercleFinance.com) - Morgan Stanley has upgraded its rating on SSE (Scottish & Southern Energy) from "weight in line" to "overweight" and has raised its corresponding target price from 1255 pence to 1290 pence, highlighting the renewable energy business as a "Jewel in the Crown".
"A simpler (and higher multiple) group structure is on the horizon as SSE exits Retail and E&P, creating a majority Renewables and Networks business," the broker said.
According to Morgan Stanley, this should increase the focus on SSE Renewables, which it considers as undervalued today. The broker therefore sees a "~20% TSR opportunity with catalysts ahead".
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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.
"A simpler (and higher multiple) group structure is on the horizon as SSE exits Retail and E&P, creating a majority Renewables and Networks business," the broker said.
According to Morgan Stanley, this should increase the focus on SSE Renewables, which it considers as undervalued today. The broker therefore sees a "~20% TSR opportunity with catalysts ahead".
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.