EDF: Oddo raises target price

(CercleFinance.com) - Oddo believes that phase I of consultations on the end of the regulated access to historical nuclear Energy (ARENH) has been launched, although (just) 50% of this reform priced in.


The broker therefore confirms its buy rating on the share, while raising its corresponding target price to 13.20 euros (from 11.90 euros). It says that the main uncertainties are the validation of the reform by Brussels of the reform and the setting of the cap and the floor.

The deadline is yet to be specified, although the schedule seems to be clearly defined. In particular the broker believes that the reform is pretty likely to be implemented in the year 2020. In any event, implementation before 2022 seems very likely now, it says.

Analysts believe that the reform will lead to significant hikes in cash flow assumptions generated by EDF, possibly reaching between 800 million euros and 2.8 billion euros per year, depending on market prices.


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