Gold prices hit 2-week high as Trump-Fed feud escalates with Cook firing
Investing.com - JPMorgan has resumed coverage of Drax Group Plc. (LON:DRX) with an Overweight rating and a price target of GBP10.00, representing a potential 46% upside from current levels. The company, with a market capitalization of $3.26 billion, has demonstrated strong performance with a 45% return over the past year and trades at an attractive P/E ratio of 5x.
The investment bank placed Drax on positive catalyst watch, citing the company’s strong positioning to create value as intermittency increases in the UK power grid.
JPMorgan expects Drax to maintain disciplined capital allocation, with the firm anticipating a £200 million extension of the share buyback program to be announced at the company’s interim results on July 31.
The coverage resumption follows a period of restriction for the JPMorgan analyst team covering the renewable energy company.
Drax Group, which also trades in the U.S. as (OTC:DRXGY), operates as a renewable energy company focused on sustainable biomass, hydro, and pumped storage.
In other recent news, Jefferies has resumed coverage of Drax Group Plc with a Buy rating, setting a price target of £7.50. The analysts at Jefferies have expressed optimism about Drax’s future, noting that their projections for EBITDA and EPS from 2025 to 2027 are higher than Visible Alpha’s estimates by 2% and 5%, respectively. This positive outlook is supported by Drax’s strategy of hedging its merchant power price exposure, which provides stability amid market uncertainties. Additionally, Jefferies highlighted potential benefits from future share buybacks and Drax’s low exposure to zonal pricing risk in the UK. These factors contribute to the analysts’ confidence in Drax’s ability to effectively manage the current market conditions. The renewed coverage by Jefferies suggests potential growth opportunities for Drax Group, supported by strategic financial planning and market positioning. Investors and analysts are closely monitoring Drax following these developments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.