EDF rises, JPMorgan bets on a bonus for nationalization | Photo credits: EDF – JAYET STEPHANIE
PARIS, July 11 (Reuters) – EDF posted one of the few sustained gains at the start of the Paris Stock Exchange on Monday, benefiting from the two-notch increase in JPMorgan’s recommendation after the government announced its desire to renationalise the electricity giant.
The title gained 0.8% to 9.64 euros at 10:00 a.m. while the broad SBF 120 index lost 1.62%.
JPMorgan raised its advice from “underweight” to “overweight” and raised its price target from 7.60 to 12 euros, explaining that it was betting on a renationalization via a takeover offer rather than by voting on a text. of law in Parliament.
“This means minority shareholders can expect a premium to speed up the process,” she wrote.
She believes that “despite the current difficulties”, a “re-regulated” EDF could be valued between 14 and 20 euros per share and that an offer in the middle of the range could satisfy both parties.
By integrating the rise of this Monday morning, the EDF action brings its decline since the beginning of the year to less than 2%. At the beginning of March, the title had fallen under seven euros.
(Written by Marc Angrand)