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Berenberg hikes target price on SSE

10:55, 22nd October 2024

Analysts at Berenberg hiked their target price on utilities giant SSE Plc   Follow | SSE from 2,100.0p to 2,300.0p on Tuesday, stating the group's quasi-regulated business mix had served it well through the energy market turmoil of recent years.

Berenberg noted that SSE remains on track to reach its March 2027 targets through a combination of renewables growth, electricity network expansion, and capacity-market-backed flexible thermal and hydro-power generation.

As a result, the German bank increased its earnings per share estimates by an average of 4% for 2025-2027 and beyond and said it expects the group to comfortably meet its 175.0p-200.0p EPS target range for 2027E.

Consequently, Berenberg thinks SSE will deliver an earnings compound annual growth rate of roughly 15% versus its 2022 base.

Berenberg also retained its 'buy' rating on SSE, highlighting that the stock was its top pick in the UK utilities space.

Reporting by Iain Gilbert at Sharecast.com

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