E.On: Jefferies maintains 'Underperform' rating

(CercleFinance.com) - Jefferies repeats its "underperform" rating on the E.
On share, along with its target price of 8.20 euros, believing that prospects for the German energy giant's new downstream activities remain difficult.

"In 2018, E.ON reported a material negative FCF (pre-div, even excluding renewables); with a flat yoy earnings profile, we believe this is likely to persist into 2019," the broker said.

"This, combined with the deal-related debt, implies borderline credit metrics," Jefferies says, adding that on its pro-forma 2020 EPS estimate, the stock is trading at a 10% premium relative to its peers and only offers a 2020-22 FCF yield of 4%.



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