Engie: Stifel initiates coverage as buyer
(CercleFinance.com) - On Tuesday, Stifel announced that it had initiated coverage of Engie shares with a Buy recommendation and a target price of E18.
2, representing 36% upside potential.
In a research note, the broker explains that it considers the group to be a leader in the global energy transition, while its valuation is "cheap" at current levels.
Stifel expects the share price to rise before the recovery of more buoyant businesses such as power grids, wind power and solar energy, all of which offer good visibility in terms of cash flow.
The improvement in this profile should enable the management team to support its two strategic priorities, i.e. dividend payout and optimisation of the capital structure, it adds.
According to Stifel, the recent downturn in the share price due to the upheavals linked to the French political situation represents an interesting entry point, particularly for yield-seeking investors.
Finally, the analyst says he sees possible upward revisions to market forecasts for 2025/2026 as a result of the recent surge in energy prices.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
2, representing 36% upside potential.
In a research note, the broker explains that it considers the group to be a leader in the global energy transition, while its valuation is "cheap" at current levels.
Stifel expects the share price to rise before the recovery of more buoyant businesses such as power grids, wind power and solar energy, all of which offer good visibility in terms of cash flow.
The improvement in this profile should enable the management team to support its two strategic priorities, i.e. dividend payout and optimisation of the capital structure, it adds.
According to Stifel, the recent downturn in the share price due to the upheavals linked to the French political situation represents an interesting entry point, particularly for yield-seeking investors.
Finally, the analyst says he sees possible upward revisions to market forecasts for 2025/2026 as a result of the recent surge in energy prices.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.