EDF: Oddo confirms rating after revenues published

(CercleFinance.com) - EDF generated 9m revenues of 50.
9 billion euros as at 30 September 2019, up 2.9% in organic terms, against the expected 50.7 billion euros.
Oddo says that performance is in line with its estimates at most businesses.

Oddo has confirmed its Buy rating on the share, with a target price of 12.0 euros (upside potential of almost 30%). Analysts believe that after its sharp fall (-33% YTD), the outlook for 2020 is sufficient to warrant a cautious return to the share.

The group has confirmed its guidelines, despite the reduction in nuclear generation targets for 2019 from 390TWh to 384-388TWh, analysts say. As a result, they adjust their estimates for 2019, although this has no impact on the share's valuation.

Few details were given regarding 2020 at the conf call, although the broker anticipates many positive factors in support of its results: Increase in "bleus" tariffs, increase in nuclear volumes in France and the UK, increase in hydro volumes, etc., the broker says.



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