EDF: Barclays raises target price

(CercleFinance.com) - Barclays reaffirms its "overweight" rating on the EDF share, based on significant upside potential relative its newly increased target price of 16.
5 euros (vs. 14 euros previously), given its expectations for the reform of the French market wholesale electricity market which remain positive

The broker has also raised its 2020 and 2021 adjusted EPS estimates by around 8% and 10%, due to on better assumptions for performance at the group's core divisions (in particular, France) and its financial result, after the group's 2019 results.

Despite a 33% increase in the share price since the start of 2020, which is the best performance in its sector, Barclays considers that the electricity group's share remains "significantly undervalued," at around 14x 2021e EPS.


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