Centrica (CNA)

Sector:

Utilities

Index:

FTSE 100

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154.10p
   
  • Change Today:
    -1.50p
  • 52 Week High: 165.80
  • 52 Week Low: 124.10
  • Currency: UK Pounds
  • Shares Issued: 5,643m
  • Volume: 16,774,232
  • Market Cap: £8,696m
  • RiskGrade: 106
  • Beta: 0.60

Goldman Sachs ups Centrica to 'buy', says underperformance overdone

By Michele Maatouk

Date: Tuesday 18 Sep 2018

LONDON (ShareCast) - (Sharecast News) - British Gas owner Centrica got a boost on Tuesday as Goldman Sachs upped the stock to 'buy' from 'sell' and lifted the price target to 176p from 174p saying the underperformance is overdone given the commodity outlook and the fact that the worst of UK regulatory risk is behind us.
GS noted that the shares have fallen around 40% over the last two years, weighed down by rising competition and increased political regulatory scrutiny within UK energy supply.

"What we believe is being overlooked is the impact of higher commodity prices. Year to date, gas and power prices have rallied 40% and 35%, respectively," the bank said. "Even taking a further £50m reduction in UK energy supply, we believe that the higher commodity prices add 26% earnings per share growth out to FY2020. This allows for the company to deliver a free cash flow yield (post total capex, pre dividends) of greater than 10% and cover its 8.4% 2021E dividend yield (27% premium to peers).

"With the stock trading at 9x 2021E price-to-earnings (a 20% discount to peers), we believe that Centrica offers good value at these levels."

Goldman said its EPS estimates are 14% and 23% ahead of Reuters consensus for FY2019 and FY2020.

The bank also noted Ofgem's recent price caps, which were in line with consensus. "We believe this event reduced sizeable downside risk and is before any potential moderation that could occur in the coming months."

At 1120 BST, the shares were up 2.2% to 148.60p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Centrica Market Data

Currency UK Pounds
Share Price 154.10p
Change Today -1.50p
% Change -0.96 %
52 Week High 165.80
52 Week Low 124.10
Volume 16,774,232
Shares Issued 5,643m
Market Cap £8,696m
Beta 0.60
RiskGrade 106

Centrica Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
59.80% above the market average59.80% above the market average59.80% above the market average59.80% above the market average59.80% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Price Trend
0.49% below the market average0.49% below the market average0.49% below the market average0.49% below the market average0.49% below the market average
42.86% below the sector average42.86% below the sector average42.86% below the sector average42.86% below the sector average42.86% below the sector average
Income
96.50% above the market average96.50% above the market average96.50% above the market average96.50% above the market average96.50% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
73.52% below the market average73.52% below the market average73.52% below the market average73.52% below the market average73.52% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average

What The Brokers Say

Strong Buy 9
Buy 0
Neutral 3
Sell 1
Strong Sell 3
Total 16
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Centrica Dividends

  Latest Previous
  Interim Final
Ex-Div 11-Oct-18 10-May-18
Paid 22-Nov-18 28-Jun-18
Amount 3.60p 8.40p

Trades for 13-Nov-2018

Time Volume / Share Price
17:04 185,500 @ 154.21p
17:04 493,400 @ 154.21p
16:59 8,162 @ 154.15p
16:59 25,212 @ 153.60p
16:59 6,683 @ 153.90p

Centrica Key Personnel

Chair Rick Haythornthwaite
CEO Iain C Conn

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