The Engie share is down by only 0.6%, while the CAC lost nearly 1.7% after the announcement of its results and forecasts.

Oddo BHF confirms its 'outperform' rating on the Engie share, with a price target raised from 16.5 to 18 euros after Engie published half-year results on Friday that exceeded Oddo BHF's expectations.

EBIT including nuclear came in at 6,393 ME (-8%), above analyst expectations (5,994 ME), and recurring net income (group share) stood at 3.8 MdE (-6.1%) versus 3,291 ME expected by Oddo BHF.

All divisions posted results in line with or ahead of our expectations", acknowledged the broker, who raised his estimates for Renewables, Flexible Generation and Retail on the basis of H1 performance.

Our EBIT assumption (excluding nuclear) is thus raised to 8547 ME (vs. 7960 ME previously) in the new guidance 8.2-9.2 MdsE', concludes the research firm.

Oddo BHF believes that Engie is currently valued at a 20% discount to the index on the basis of its normalized results (2026).

Engie also announced an upward revision of its full-year targets. The energy group is now targeting recurring net income, group share, of 5 to 5.6 billion euros in 2024 (instead of 4.2 to 4.8 billion).

UBS indicates that this upward revision of 2024 forecasts is not taken into account by the consensus and UBSe. Following this announcement, UBS confirms its Buy recommendation on the share with a price target of E17.

'Engie raises its guidance for 2024 on the basis of positive commercial performance and interest income. The group sees opportunities for organic growth in electricity networks' says UBS.

Copyright (c) 2024 CercleFinance.com. All rights reserved.