Erste Group re-starts EVN with 'buy' on Verbund appeal

VERBUND AG

16/02/2023 12:08

** Erste Group re-initiates its coverage of Austrian utility
firm EVN  EVNV.VI  with "buy", citing the importance of its
12.63% stake in hydropower utility Verbund  VERB.VI 
    ** The broker notes EVN's stake in Verbund, worth around 3.4
billion euros ($3.42 billion), covers almost the entire market
capitalization of EVN
    ** It notes Verbund's number two position in Europe in
hydropower production, and with electricity prices rising, it
forecasts EVN to receive across three years dividend payments
worth over 500 million euros
    ** Erste Group also forecasts EVN's regulated business in
Austria to generate a stable or even increasing cash flow, with
strong contributions from consolidated participations coming on
top
    ** It sets its target price at 31 euros per share,
representing an upside of 63% compared to Wednesday's close
    ** Out of five analysts that cover EVN, four rate the stock
"strong buy" or "buy" and ​one analyst rates it "hold"
($1 = 0.9343 euros)
 (Reporting by Tristan Chabba)
 ((Tristan.chabba@thomsonreuters.com))