(CercleFinance.com) – Oddo maintains its ‘outperformance’ rating for E.ON shares. with an unchanged target price of 12.5 euros.
The analysis office indicates that in a context of sharp rise in energy prices, the question of household purchasing power in terms of energy is of concern to investors.
The analyst indeed organized a road show with a large panel of investors with Marc Spieker, Chief Financial Officer of the group.
According to Oddo, the company E.ON. is ‘fairly reassuring’ on this, and has built up provisions higher than its historical pace following the COVID crisis which has led it to raise the provision threshold for defaults in the past. These provisions have not been reversed and therefore constitute a significantly higher level of security than historically.
In addition, ‘while the rise in energy prices is currently only partially reflected on the end customer, the group has not yet observed a significant drop in demand in the B to C segment. ‘, reports the broker.
In this context, ‘the outlook remains good’, judges Oddo who maintains his assumption of an overrun of the 2026 EBITDA target set at 7.8 billion euros and expects it at 8.2 billion euros.
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