Deutsche Bank cuts Uniper shares target amid fading energy price benefits

Published 21/08/2024, 09:32
Deutsche Bank cuts Uniper shares target amid fading energy price benefits

On Wednesday, Deutsche Bank adjusted its price target for Uniper SE (UN01:GR) (OTC: OTC:UNPRF) shares, a prominent player in the energy sector, reducing it to €46.00 from the previous €47.00. The firm's rating remains at Hold. This revision follows the company's recently updated guidance and financial results.

The adjustment comes after Uniper SE's mid-year review, where it presented a more robust performance than anticipated from its Gas Midstream operations within the Greener Commodities segment. On July 31, Uniper pre-released its financial results and subsequently raised its guidance for the year.

Despite the positive outlook for 2024, Deutsche Bank has decreased its projections for Uniper by about 5% for 2025 and approximately 20% for 2026.

The revision takes into account the company's own commentary suggesting that the favorable conditions in hedged prices, brought about by the ongoing energy crisis, are expected to wane from the second half of the year and into the future.

For the year 2026, Deutsche Bank has notably reduced its EBITDA estimate for Uniper's Green Commodities by roughly 25% to approximately €400 million, down from the former estimate of €539 million.

This change reflects the bank's anticipation that it may take longer than previously expected for the underlying profitability of this segment to rebound.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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