Centrica: Credit Suisse raises target price

(CercleFinance.com) - Credit Suisse reinstates its "outperform"' rating on Centrica shares, having increased its target price for them to 95p (from 90p), after updating its model for a 25% energy profit tax, which it says will last until the end of 2023.


Assuming 3.5TWh higher UK nuclear generation in 2022 alone, the broker has increased its 2022 EPS estimate for Centrica by 4%, although has cut its 2023 estimate by 10%.

"We assume lower working capital outflow, which causes our TP to rise by 5p to 95p. We believe adverse political intervention on nuclear can be averted," Credit Suisse adds.


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