Higher power prices already baked in for Verbund, MS starts with 'equal-weight'

VERBUND AG

03/04/2023 09:52

** Morgan Stanley starts Verbund  VERB.VI  with
"equal-weight" saying the Austrian utility is a key beneficiary
of higher power prices over the coming years, but sees this as
already priced in the current valuation
    ** The broker estimates the company's share price implies a
long-term power price around €74/MWh, significantly above the
€60/MWh that is implied by the average generation exposed
utility
    ** "Furthermore, while we see investments into New
Renewables and Grids as potentially value accretive, again we
see these as fairly valued at the current share price," MS says
    ** MS sees an heightened execution risk for Verbund given it
has a short track record relative to other renewable developers
    ** Still, thanks to rising power prices the broker estimates
Verbund's EBITDA to jump 240% to EUR 4.4 BLN for 2023 compared
to 2020

 (Reporting by Paolo Laudani)
 ((Paolo.laudani@thomsonreuters.com))