LONDON (ShareCast) - (Sharecast News) - Royal Bank of Canada upgraded SSE to 'outperform' as the bank took a more positive view of the group's green energy targets and the regulatory outlook.
RBC analysts said they were more convinced than previously about SSE's ambition to triple renewable energy output by 2030 and achieve an annual run rate of 1GW of new assets in the second half of the 2020s.

The analysts said SSE offers steady growth from the energy transition in networks and that Ofgem, the sector regulator, appears to be softening its stance on prices and total expenditure before a decision in December.

RBC also said much of SSE's balance sheet risk.had dissipated following progress on its £2bn disposals plan.

The analysts, led by John Musk, upped their rating on SSE shares from 'sector perform' and increased their price target to £16.25 from £14. The shares rose 0.9% to £13.78.5 at 13:49 GMT.

"We upgrade SSE ... as we give more credit to enhanced renewable growth ambitions and expect a softening in the regulatory outlook for networks," Musk wrote in a note to clients.

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