Engie: Oddo BHF maintains buy rating

(CercleFinance.com) - On Thursday morning Oddo BHF confirmed its buy rating on the Engie share, with a target price of 15 euros.


Analysts believe that the quarterly results published by the energy group, which were marked by organic sales growth of 5% and underlying operating income of 3.5 billion euros, are in line with expectations.

The signs of an improvement in the group's growth momentum (are) confirmed, the broker says in a research report. In spite of disappointments at its Belgian nuclear power plants, Engie has also confirmed its forecasts (which were recently trimmed) for FY 2018.

Beyond this, Oddo BHF believes that Engie's Client Solutions division, which to date has not really stood out, should become a performance driver as from Q4 this year into 2019. In addition, the availability of Belgian nuclear reactors is expected to increase from 52% in 2018 to 74% in 2019.

Oddo BHF concludes that Engie is currently trading at a 2019 P/E of 11.6x, which represents a discount of about 15% relative to its peers, while EPS is expected to increase by about 10% p.a. 2018 and 2021.



Copyright (c) 2018 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.