Uniper: stock drops after analyst downgrade
(CercleFinance.com) - Shares of Uniper dropped on Friday after an analyst downgraded the stock, citing a deterioration in the German energy group's outlook.
Jefferies said that the disappointing recent update, along with the weakening of spreads, plant delays and escalating geopolitical risks in Russia all point towards a deterioration in the company's outlook.
"The share price so far seems to have been supported by anticipations of Fortum taking full control of Uniper, which we think is unlikely due to limited balance sheet capacity," the broker said.
"Growing realisation of this, along with weaker fundamentals, are likely to rein in the stock," it added, cutting its "rating" to "underperform," with a target price of 22 euros.
The shares traded on the Xetra platform were down 0.7% at 27.1 euros after these comments.
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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.
Jefferies said that the disappointing recent update, along with the weakening of spreads, plant delays and escalating geopolitical risks in Russia all point towards a deterioration in the company's outlook.
"The share price so far seems to have been supported by anticipations of Fortum taking full control of Uniper, which we think is unlikely due to limited balance sheet capacity," the broker said.
"Growing realisation of this, along with weaker fundamentals, are likely to rein in the stock," it added, cutting its "rating" to "underperform," with a target price of 22 euros.
The shares traded on the Xetra platform were down 0.7% at 27.1 euros after these comments.
Copyright (c) 2018 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.