SSE (SSE)

Sector:

Electricity Generation and Distribution

Index:

FTSE 100

1,311.00p
   
  • Change Today:
    -5.00p
  • 52 Week High: 1,336.50p
  • 52 Week Low: 1,008.00p
  • Currency: UK Pounds
  • Shares Issued: 1,035.02m
  • Volume: 1,534,643
  • Market Cap: £13,569m
  • RiskGrade: 109
  • Beta: 0.48

Morgan Stanley upgrades SSE to 'overweight'

By Alexander Bueso

Date: Tuesday 10 Sep 2019

LONDON (ShareCast) - (Sharecast News) - Morgan Stanley upgraded its view on SSE shares, arguing that the company's divestment of its Retail and Exploration and Production arms would simplify the business, raising the profile of its renewables operations and in turn resulting in a higher valuation multiple.
The investment bank's latest analysis shed a roughly £10.0bn valuation for SSE Renewables and for the company's thermal assets.

In itself, that meant the former were undervalued and meant no new growth was being factored-in.

"We believe an exit [of the B2C Retail unit] would remove an overhang and catalyse a re-rating. If SSE traded on a National Grid DY (6%) then we could justify ~20% share price upside (>1,350p)," they said.

And Morgan Stanley forecast that a reduction in SSE's trading losses, together with renewables coming on-line and higher power prices would drive greater than 20.0% growth in the company's earnings per share over 2021 and 2022.

The analysts also highlighted how, based on history, the shares were then changing hands at an approximately 20.0% discount to the sector and of 7.0% versus the wider market, as well as its "impressive" 7.0% dividend yield.

Furthermore, while there was some uncertainty as a result of Brexit and the possibility of an early election, Morgan Stanley pointed out how polling was more split than in the past.

Morgan Stanley also bumped up its target price for SSE's shares, from 1,255.0p to 1,290.0p.

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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.

 

Scottish & Southern Market Data

Currency UK Pounds
Share Price 1,311.00p
Change Today -5.00p
% Change -0.38 %
52 Week High 1,336.50p
52 Week Low 1,008.00p
Volume 1,534,643
Shares Issued 1,035.02m
Market Cap £13,569m
Beta 0.48
RiskGrade 109

Scottish & Southern Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
68.98% above the market average68.98% above the market average68.98% above the market average68.98% above the market average68.98% above the market average
80.00% above the sector average80.00% above the sector average80.00% above the sector average80.00% above the sector average80.00% above the sector average
Price Trend
62.88% above the market average62.88% above the market average62.88% above the market average62.88% above the market average62.88% 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
Income
70.58% above the market average70.58% above the market average70.58% above the market average70.58% above the market average70.58% 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
80.8% below the market average80.8% below the market average80.8% below the market average80.8% below the market average80.8% 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 7
Buy 2
Neutral 10
Sell 0
Strong Sell 0
Total 19
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Scottish & Southern Dividends

  Latest Previous
  Interim Final
Ex-Div 16-Jan-20 25-Jul-19
Paid 13-Mar-20 20-Sep-19
Amount 24.00p 68.20p

Trades for 20-Nov-2019

Time Volume / Share Price
16:35 709,683 @ 1,311.00p
16:29 14 @ 1,316.50p
16:29 96 @ 1,316.00p
16:29 127 @ 1,316.00p
16:29 111 @ 1,316.50p

Scottish & Southern Key Personnel

CEO Alistair Phillips-Davies
Finance Director Gregor Alexander
Chair Richard Gillingwater

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