EDF: Oddo confirms rating
(CercleFinance.com) - The group has launched its first issue of green OCEANE bonds amounting to 2.
4 billion euros.
Considering the 2.4 billion euro issue, represented by about 219.58 million bonds with a par value of 10.93 euros, based on the initial conversion ratio, the potential dilution would be approximately 7.1% of the company's capital if the right to the attribution of shares was exercised for all the bonds and the company decided to issue only new shares if the rights were exercised, Oddo pointed out.
The analyst believes that this dilution of 7.1% is very correct from an arithmetic point of view on EPS and does not represent a destruction of value linked to this operation.
Oddo therefore confirms its buy rating on the share, with a target price of 11.50 euros. It recommends investors take advantage of yesterday's share price weakness to buy it.
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.
4 billion euros.
Considering the 2.4 billion euro issue, represented by about 219.58 million bonds with a par value of 10.93 euros, based on the initial conversion ratio, the potential dilution would be approximately 7.1% of the company's capital if the right to the attribution of shares was exercised for all the bonds and the company decided to issue only new shares if the rights were exercised, Oddo pointed out.
The analyst believes that this dilution of 7.1% is very correct from an arithmetic point of view on EPS and does not represent a destruction of value linked to this operation.
Oddo therefore confirms its buy rating on the share, with a target price of 11.50 euros. It recommends investors take advantage of yesterday's share price weakness to buy it.
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.