Centrica: penalised by a broker's downgrade
(CercleFinance.com) - The Centrica share is tumbling almost 5% in London today, hit by Jefferies's downgrading its rating on the stock form "buy" to "hold," having cut its corresponding target price from 170 pence to 125 pence for the share of the British energy group.
The broker expects that the group will report lackluster results for 2018 in February and that this will weigh on the share in the short term. Amongst other things, it also detects significant medium-term risks on the group's 2019-2020 results.
"With this, we see a timely disposal of Centrica's 20% nuclear stake as critical to protect its balance sheet against another potential hit," the broker adds.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The broker expects that the group will report lackluster results for 2018 in February and that this will weigh on the share in the short term. Amongst other things, it also detects significant medium-term risks on the group's 2019-2020 results.
"With this, we see a timely disposal of Centrica's 20% nuclear stake as critical to protect its balance sheet against another potential hit," the broker adds.
Copyright (c) 2019 CercleFinance.com. All rights reserved.