Centrica: Jefferies upgrades stock
(CercleFinance.com) - Jefferies has upgraded its recommendation on the Centrica stock from "hold" to "buy," while more than doubling its target price from 29 pence to 60 pence, believing that the British energy group's share is trading at a 45% discount relative to its sector.
"The disposal of CNA's US business for £2.85bn (+22p vs JEFe) is in our view transformational and shows management taking back control after an uncontrollable period," the broker said.
Jefferies also notes that the Covid impact in H1 turned out to be less than expected, leading it to reduce its estimate of the Covid impact for 2020 by 25%. As a result, the broker is raising its 2020 and 2021 EPS estimates by an average of 25%.
The share is currently up over 3% in London.
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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.
"The disposal of CNA's US business for £2.85bn (+22p vs JEFe) is in our view transformational and shows management taking back control after an uncontrollable period," the broker said.
Jefferies also notes that the Covid impact in H1 turned out to be less than expected, leading it to reduce its estimate of the Covid impact for 2020 by 25%. As a result, the broker is raising its 2020 and 2021 EPS estimates by an average of 25%.
The share is currently up over 3% in London.
Copyright (c) 2020 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.