DB resumes coverage of European utilities with neutral sector view

Fortum Oyj

02/10/2024 11:13

** Deutsche Bank says a recovery in European utility stocks
has narrowed their 15% underperformance vs wider market to just
2%, leaving the broker neutral on the sector
    ** "The rally and modest earnings upgrades means that the
sector is again closer to its long-run norm: P/E parity," it
says
    ** It adds there are still some attractive stock-picking
opportunities, as it resumes coverage of four stocks with "buy"
and nine with "hold"; it also raises PTs for six stocks
    
DB'S RATINGS AND PRICE TARGETS:
 COMPANY                   RATING  PT
 Engie  ENGIE.PA           Buy     EUR 17.50
 Italgas  IG.MI            Buy     EUR 6.20
 Snam  SRG.MI              Buy     EUR 5.40
 National Grid PLC  NG.L   Buy     1,100 p
 Orsted  ORSTED.CO         Buy     DKK 500 (from DKK 470)
 Veolia  VIE.PA            Buy     EUR 34 (from EUR 33)
 Fortum  FORTUM.HE         Hold    EUR 13.70
 Enel  ENEI.MI             Hold    EUR 7.00
 Terna  TRN.MI             Hold    EUR 8.40
 Enagas  ENAG.MC           Hold    EUR 14.50
 Iberdrola  IBE.MC         Hold    EUR 13
 Redeia  REDE.MC           Hold    EUR 17.70
 Pennon Group  PNN.L       Hold    600 p
 SSE  SSE.L                Hold    2,000 p 
 Severn Trent  SVT.L       Hold    2,700 p
 EDP  EDP.LS               Hold    EUR 4.20 (from EUR 3.80)
 Acciona Energia  ANE.MC   Hold    EUR 22 (from EUR 21)
 EDPR  EDPR.LS             Hold    EUR 16 (from EUR 14.50)
 Verbund  VERB.VI          Sell    EUR 63 (from EUR 62)
 
 (Reporting by Anna Peverieri)
 ((Anna.peverieri@thomsonreuters.com))