EDF: Oddo confirms rating and target price

(CercleFinance.com) - Oddo believes that the consultation on the end of the ARENH is launched.
It says that the government is opening a consultation on a new mechanism to better compensate nuclear energy production, the broker says.

This aims to overcome the shortcomings of ARENH and restore balance. The current level of ARENH set at 42 E/MWh. This constitutes a subsidy to competition but does not cover the full costs of EDF, Oddo adds.

Analysts say that the functioning of the new mechanism envisaged consists of fixing a price corridor around the market price, with a fluctuation band of 6 E/MWh.

Oddo confirms its "Buy" rating on the share with a target price of 11.90 euros. It says that the launch of the consultation is a very encouraging first sign for the continuation of the reform and the implementation of the Hercule project in the summer.


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