(CercleFinance.com) – The title fell by almost 5% after several negative analyses.
Bank of America on Tuesday degraded its recommendation on the title, which it reduces from ‘buy’ to ‘underperformance’ with a price target reduced from 19 to 12 euros.
In a note devoted to European utility providers released in the morning, the research department explains that the risks surrounding the results of the French energy group are, from its point of view, oriented downwards.
BofA points out that its initial objectives, which provided for significant upside potential in terms of profits, have been annihilated, among other things, by the increase in nuclear provisions in Belgium.
The analyst also considers the mechanism for recovering excess revenue from electricity producers put in place by the French state as one of the most penalizing in Europe, again to the detriment of Engie.
UBS confirms for its part its advice to purchase and also lowers its target price to 15 E (instead of 15.5 E) before the expected update of the strategic plan.
‘ The consensus is perhaps a bit high. We are reducing the forecast and bringing the PT down to EUR 15.0, but keeping our buy rating due to the unjustified low valuation,” says UBS.
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