(News Bulletin 247) – Deutsche Bank reduced its price target on Engie on Friday from 17 to 16.5 euros, considering that the agreement concluded with the Belgian state in the nuclear sector had been made at a certain cost.
As a reminder, the energy group announced yesterday that it had agreed with the Belgian government to extend the life of two of its nuclear power plants, an agreement which is accompanied by the setting of a lump sum for future costs linked to the treatment of waste.
‘This agreement removes a major risk for the title, but it is also based on a significant premium compared to the book value of its nuclear provisions’, underlines the broker.
The increase in these commitments will correspond to an amount of around 4.5 billion euros (ie 1.9 euros per share), much higher than the two billion euros that the broker anticipated for its part.
Despite everything, DB maintains its buy recommendation on the stock.
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