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SSE not out of the woods yet, warns UBS

By Oliver Haill

Date: Wednesday 16 Jan 2019

SSE not out of the woods yet, warns UBS

(Sharecast News) - SSE is highly rated by analysts, but UBS downgraded the energy giant to 'neutral' on Wednesday as it is "not out of the woods yet".
UBS, which cut its price target to 1,190p to 1,400p, felt that other City firms are taking the nationalisation risk "too lightly, and we believe this risk may weigh on the shares until the next UK general election, or beyond".

Also, with SSE and Npower pulling out of the merger of their retail arms, SSE "may now be stuck for some time with an unwanted retail business that is losing customers fast".

On the plus side, the UBS analysts like the look of the renewables pipeline, with a major catalyst coming up in the UK wind auction.

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