EDF: Oddo confirms rating after Q1 results
(CercleFinance.com) - Oddo believes that EDF has published Q1 sales that are pretty much in line with its expectations.
Revenues came in at 20.7 billion euros (-1% in organic terms), compared to 20.5 billion euros expected.
The COVID crisis has had a limited negative impact on Q1 2020 revenues that is estimated at 247 million euros, in particular due to a fall in demand for electricity, gas and services. However, the exact impact on EBITDA is unknown at this stage, Oddo said.
Oddo underlines that for the time being the group maintains its assumption of a production of 300 TWh in 2020 and then 330-360 TWh in 2021 and 2022.
Meanwhile, analysts believe that despite the cascade effect, optimising the shutdown schedule could lead to a production level at the bottom of the range in 2021 (at 330 TWh) and production at the top of the range in 2022, at 360 TWh, they add.
It should be noted that the broker's valuation of 10 euros per share is currently based on an assumption that only 50% of the Hercule project is implemented.
Oddo confirms its buy rating on the EDF share with a target price of 10 euros (36% upside).
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