Centrica (CNA)

Sector:

Utilities

Index:

FTSE 100

132.00p
   
  • Change Today:
      1.85p
  • 52 Week High: 172.50p
  • 52 Week Low: 115.60p
  • Currency: UK Pounds
  • Shares Issued: 5,283m
  • Volume: 30,138,356
  • Market Cap: £6,974m
  • RiskGrade: 165

JP Morgan upgrades Centrica to 'overweight'

By Sean Farrell

Date: Thursday 24 Sep 2020

LONDON (ShareCast) - (Sharecast News) - JP Morgan said Centrica shares were in "deep value territory" as the bank upgraded its rating on the energy company to 'overweight'.
The British Gas owner has failed over several years to adapt to increased competition and regulatory scrutiny in its consumer business and has been hit by volatile oil and gas prices, JP Morgan analysts said. New management is starting to turn things round by simplifying the business and cutting costs, they said.

Competition will remain tough but Centrica is the UK's biggest household energy provider and has yet to take advantage of its scale, JP Morgan said. Restructuring will help push up profit margins for at British Gas to at least 3% in 2022 from 2% in 2020, the analysts estimated.

Analyst Javier Garrido upgraded Centrica's shares to 'overweight' from 'neutral' and cut his price target to 60p from 75p. He said his bear case scenario suggested the shares could fall 25% but that the base case scenario was for a 50% increase with the shares doubling in a bullish scenario.

"Centrica shares are trading in deep value territory," Garrido wrote in a note to clients. "Business simplification and material restructuring ... should bring stability, if not growth, to the core. The risk/reward is clearly skewed to the upside and therefore we upgrade to OW [overweight],"

Garrido said he expected full-year results for 2020 to be the main catalyst for the shares. Sales of exploration and production and nuclear businesses should remove volatility and help drive a rerating too, he said.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Centrica Market Data

Currency UK Pounds
Share Price 132.00p
Change Today 1.85p
% Change 1.42 %
52 Week High 172.50p
52 Week Low 115.60p
Volume 30,138,356
Shares Issued 5,283m
Market Cap £6,974m
RiskGrade 165

Centrica Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
91.71% above the market average91.71% above the market average91.71% above the market average91.71% above the market average91.71% above the market average
60.00% above the sector average60.00% above the sector average60.00% above the sector average60.00% above the sector average60.00% above the sector average
Price Trend
40.65% above the market average40.65% above the market average40.65% above the market average40.65% above the market average40.65% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Income
65.70% above the market average65.70% above the market average65.70% above the market average65.70% above the market average65.70% above the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Growth
63.29% above the market average63.29% above the market average63.29% above the market average63.29% above the market average63.29% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average

What The Brokers Say

Strong Buy 3
Buy 6
Neutral 6
Sell 0
Strong Sell 0
Total 15
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Centrica Dividends

  Latest Previous
  Final Interim
Ex-Div 30-May-24 05-Oct-23
Paid 11-Jul-24 16-Nov-23
Amount 2.67p 1.33p

Trades for 14-Jun-2024

Time Volume / Share Price
16:35 2,003,401 @ 132.00p
16:35 33,625 @ 132.00p
16:35 12,609,029 @ 132.00p
16:35 2 @ 132.00p
16:35 5,200 @ 132.00p

Centrica Key Personnel

Chair Scott Wheway
CEO Chris O’Shea

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