EDF: Oddo downgrades stock

(CercleFinance.com) - The French government has announced measures to limit the increase in electricity tariffs in 2022.


These measures consist of a deferral over 12 months from 1 February 2023 of part of the tariff increase relating to the year 2022 for the residential and "professional blue" TRVs so that the increase is capped at 4%.

In a second press release published yesterday evening, EDF announced that it had revised its 2022 nuclear production estimate downwards to 300-330 TWh from the previous estimate of 330-360 TWh for 2022.

This revision results from the extension of the shutdown period of 5 reactors in EDF's French nuclear fleet.

According to analysts' estimates, depending on the expected market prices for 2022, the impact could be an average of E7.5bn over the year, Oddo said.

Oddo downgrades its stock rating to Neutral from Outperform with a lower target price of E11 (from E13.5).

The share, in a real blood bath today, is currently down 17% at just over 8.5 euros.


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