Analysts at Berenberg hiked their target price on utilities giant 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.
SSE
22 October 2024 10:39:11
Source: Sharecast
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.
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