Engie: Credit Suisse cuts target price
(CercleFinance.com) - Credit Suisse has reduced its 2020e EPS estimates by 28%, followed by 11%-15% in 2021-23e.
The broker has also cut its target price for the share to 13.5 euros (vs. 16.9 euros), while remaining neutral towards the stock.
Credit Suisse believes that Engie is one of the European integrated utility groups that is the most exposed to the current economic downturn, mainly due to its client solutions business.
"We believe the search for a new CEO has turned 2020 into a year of transition, even if we see the recent comments from the Chairman on the need to rebalance renewables growth and sell-downs while opening the capital of gas networks as going in the right direction," the broker says.
"While in our view it could take up to 12 months for a new CEO to be in place, we believe a prolonged management transition could have a negative impact on Engie's equity story," Credit Suisse adds.
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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.
The broker has also cut its target price for the share to 13.5 euros (vs. 16.9 euros), while remaining neutral towards the stock.
Credit Suisse believes that Engie is one of the European integrated utility groups that is the most exposed to the current economic downturn, mainly due to its client solutions business.
"We believe the search for a new CEO has turned 2020 into a year of transition, even if we see the recent comments from the Chairman on the need to rebalance renewables growth and sell-downs while opening the capital of gas networks as going in the right direction," the broker says.
"While in our view it could take up to 12 months for a new CEO to be in place, we believe a prolonged management transition could have a negative impact on Engie's equity story," Credit Suisse adds.
Copyright (c) 2020 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.