Market's view on SSE
Published on April 2024
- RBC has lowered the SSE price target from 2,050 pence to 1,925 pence, retaining an ‘outperform’ rating, while Goldman Sachs increased their price target from 2,403 pence to 2,424 pence, giving a ‘buy’ rating.
- JPMorgan has slightly increased SSE’s price target from 2,050 pence to 2,075 pence, maintaining an ‘overweight’ rating.
- An article in IC raised questions about SSE’s net zero strategy, highlighting costly investments in offshore windfarms and Scottish Islands connections that could potentially increase profits due to rising Regulated Asset Base.
- SSE’s adjusted earnings per share for 2023/24 are expected to be between 152-160 pence, aligning with previous forecasts. The company has reiterated its 2026/27 earnings target of 175-200 pence per share.
- SSE is downsizing its thermal “fossil fuel” division, with uncertain performance anticipated in renewables influenced by the EV market.
- Jefferies upgraded SSE to ‘buy’ from ‘hold’, increasing the price target from 1,620 pence to 1,850 pence.
- Concerns have been voiced regarding Labour party policies potentially affecting SSE’s future operations and project timelines.
- Questions were raised about the impact of potential Labour government policies on SSE, particularly with no mention of SSE in discussions about possible re-nationalisation plans focusing on other sectors like water.