Procore signs multi-year strategic collaboration agreement with AWS
Monday, Deutsche Bank (ETR:DBKGn) analysts raised the price target for SSE Plc . (LSE:LON:SSE) (OTC:SSEZY), a $26.27 billion utility company, to £19.00 from £18.50, while maintaining a Buy rating. The decision follows SSE’s recent release of its 2024/25 results, which were in line with expectations, but included adjustments to its 2026/27 guidance. According to InvestingPro data, SSE boasts a GREAT financial health score and has maintained dividend payments for 34 consecutive years, currently yielding 4.43%.
During a conference call, SSE provided segmental guidance for 2025/26, which was viewed as slightly weaker than anticipated. This has led Deutsche Bank to adjust its estimates, reducing the 2025/26 expected earnings per share (EPS) by 3%, from 154p to 150p, compared to the Bloomberg consensus of 158p. The stock currently trades at a P/E ratio of 16.33, and InvestingPro analysis suggests the stock is slightly overvalued at current levels. Subscribers can access 12+ additional key metrics and insights about SSE’s valuation.
For the 2026/27 period, Deutsche Bank has maintained its EPS estimate at 184p, within SSE’s guidance range of 175-200p and close to the consensus of 186p. The final outcome for SSE’s performance in 2026/27 may hinge on the results of the transmission regulatory review, with Ofgem set to present draft proposals on June 25.
The updated price target reflects Deutsche Bank’s assessment of SSE’s financial outlook amid these recent developments.
In other recent news, Bernstein analysts have maintained their positive outlook on SSE Plc, reiterating an Outperform rating and setting a price target of £23.00. The analysts highlighted SSE’s robust earnings growth, particularly emphasizing the significant capital expenditure in its Power Networks division. This division is expected to be a major contributor to SSE’s earnings, accounting for about 46% of its adjusted EBIT from the fiscal year 2025 to 2025. Bernstein projects that SSE’s earnings per share will grow at a compound annual growth rate of 8% during this period, driven by regulatory stability in the Networks business. The Renewables division of SSE also received attention for its disciplined capital allocation and successful project execution, further enhancing the company’s growth prospects. Notably, the Renewables division’s lack of exposure to the US market is seen as an advantage. These recent developments reflect Bernstein’s confidence in SSE’s strategic direction and growth potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.