TSX higher on employment data
Investing.com - JPMorgan has raised its price target on SSE Plc. (LON:SSE) to GBP24.25 from GBP23.00 while maintaining an Overweight rating, citing the recent share price decline as a buying opportunity.
The investment bank views the drop in SSE’s stock—driven by rising UK bond yields and balance sheet concerns—as presenting a favorable entry point for investors, with its new price target implying 45% upside potential.
JPMorgan notes that SSE is currently trading at 8.5x FY27 earnings based on its refreshed estimates, positioning the utility company as its top pick in the UK market and maintaining it on the firm’s Analyst Focus List.
The bank expects that the completion of the Transmission regulatory review and offshore wind auction results will enable SSE to provide clearer medium-term capital expenditure and earnings guidance, along with details on funding strategies for growth initiatives.
JPMorgan believes SSE’s balance sheet remains well positioned to fund investments through FY29, with the company able to recycle capital through disposals to support capital expenditures extending to FY31.
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