On Monday, Deutsche Bank raised its target price for Engie from 16 to 16.5 euros, while renewing its buy recommendation on the stock.

While it has held a "neutral" overall opinion on the utilities sector since the start of the year, the intermediary now takes a more positive view.

He explains that the earnings dip that was supposed to occur as a result of falling electricity prices has not materialized, allowing the sector to stand out in terms of valuation.

Over a two-year horizon, the sector's P/E is at a 7% discount to the rest of the market, notes the intermediary, who points out that such a phenomenon has occurred only 1.4% of the time over the 2010-2023 interval.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.