Engie: Barclays downgrades stock
(CercleFinance.com) - On Thursday, Barclays downgraded Engie shares from "overweight" to "equal weight", while maintaining its target price for them at E18.
In a study on the European energy sector, the analyst points out that the French energy group's shares are still trading at a low valuation, with a P/E of around 9x for a dividend yield of 8%.
However, after its significant outperformance this year (with a total return of +18% since 1 January, compared with just a 4% increase for the STOXX Europe 600 Utilities index), the broker says that it sees less market potential in the stock, as well as fewer catalysts, compared with other sector players.
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