Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Kepler Cheuvreux upgraded Verbund AG (VIE:VER) (OTC:OEZVY) from Reduce to Hold on Monday, maintaining its price target of EUR60.00.
The upgrade follows a nearly one-third decline in Verbund’s share price since Kepler Cheuvreux’s 2023 downgrade, with the stock now reaching the firm’s target price.
The research firm cited the normalization of gas prices after the 2022 energy crisis as a key factor in its decision, noting that elevated gas price expectations may have been "one of the market’s biggest mistakes."
Kepler Cheuvreux highlighted that gas forward price indicators have efficiently reflected the outlook toward normalization since the beginning of the price crisis in 2021, a view the firm has maintained since early 2023.
The research note emphasized Verbund’s position as "one of the sector’s most highly exposed names to power prices," suggesting the market took two years to abandon its short-term perspective and properly price in longer-term energy market factors.
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