JPMorgan resumes coverage of Drax at 'overweight'

(Sharecast News) - JPMorgan Cazenove resumed coverage of Drax on Friday with an 'overweight' rating and 1,000 price target after a period of restriction. The bank said its analysis continues to support its view that the company is "well positioned to create value as intermittency increases in the UK power grid".

Furthermore, JPM said it expects Drax to continue to be disciplined on capital allocation.

"We expect a £200m extension of the share buyback to be announced at interim results on July 31st, and we place Drax on positive catalyst watch," it said.

At 0930 BST, the shares were up 1.4% at 693p.