Share Prices & Company Research

Market News

28 Jul 2020 | 16:27

Jefferies ups Centrica to 'buy' following H1 update

(Sharecast News) - Analysts at Jefferies upgraded energy services and solutions company Centrica's shares to 'buy' on Tuesday, stating the group now appeared to be "taking back control". Jefferies said the disposal of Centrica's US business for £2.85bn was, in its view, "transformational" and showed management was taking back control after "an uncontrollable period".

The analysts also pointed out that the first-half Covid-19 hit to the group of £60m was lower than it expected - resulting in a 25% cut to the pandemic's overall estimated impact and leaving Jefferies confident in Centrica's ability to weather the second-half storm.

With this and a recovery in commodity prices, Jefferies increased its 2020-21 earnings per share forecast for the group by 25% despite deal dilution.

Jefferies also highlighted that Centrica was up 20% since the disposal announcement but still remained at a 45% discount to the sector as a whole.

"The benefits of the US deal are by far the largest factor adding +22p, whilst there are also moving parts around the current cost-savings plan," said the analysts.
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 15th January 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.