This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Attractive bounce by shares from Feb rising support offers chance to piggyback short-term momentum which is in evidence across the sector. Revival of interest in Utilities names, which now offers big dividend yields (8%). Concerns about sustainability of dividends may be overdone. Recent FY results showed exodus of customers slowed. Uncertainty related to UK energy price cap now priced in.
Consensus is Neutral (56% Hold), but 67% of price targets suggest upside form current levels, which offers potential for the current uptrend to encourage brokers to upgrade their ratings, further boosting the already positive share price momentum.
Next Event: Q2 Production, 31 Jul
Latest Broker 12-Month Consensus: 22% Buy, 56% Hold, 22% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
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