EDF: UBS still a buyer after Nicolas Hulot quits as minister

(CercleFinance.com) - This morning, UBS confirms its buy rating on the EDF stock, saying that the departure of the French Minister of Ecology, who is in charge of energy transition, Nicolas Hulot, could foreshadow good news for the electro-nuclear group.

The broker has set a 12-month target price of 16 euros for the stock.

Mr. Hulot explains his decision to quit the government by an accumulation of disappointments, which includes difficulties in reducing French nuclear power generation, with the government delaying its decisions about which power station/s to close.

However, UBS believes that France needs to extend the life of most of its nuclear fleet (...) and that the resignation of Mr. Hulot could mean that a decision on this direction is looming, analysts speculate. The fact that the announcement was made while President Macron was traveling abroad could also suggest an "imminent" decision.


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