Analyst downgrades EDF shares
Equity analyst S&P Capital has deemed EDF shares as overvalued and dropped its recommendation from Hold to Sell despite sealing a strike price for its planned Hinkley Point C nuclear plant.
S&P increased its target price to €22 but lowered its recommendation on the grounds that the stock was above the target having soared 84 per cent in the past year.
Analyst Clive Roberts said the 35-year index-linked strike price agreed this week and anticipated 10 per cent return were offset by other risks. “Construction cost overruns will be borne by EDF and any savings must be shared with customers” he said and warned that: “The deal must first circumnavigate the European Commission's rules on state aid.”
S&P expected EDF to invest £3.5 billion in Hinckley Point C over the construction period, prior to selling 50-55 of the equity.
- ONR denies licensing regime hinders small-scale nuclear The UK's nuclear regulator has refuted claims that small scale nuclear development is hampered by its licensing regime, MPs...
- UK leads in list of EU’s most polluting power plants The UK’s fleet of coal-fired power plants are some of the most polluting in the European Union, a new study shows.
- GE Hitachi and Iberdrola sign MoU on nuclear project GE Hitachi (GEH) and Iberdrola have signed a Memorandum of Understanding (MoU) on an energy from nuclear waste project.