LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg upgraded energy firm SSE from 'hold' to 'buy' on Thursday, stating they now see "a buying opportunity".
Berenberg said the upgrade reflected its "increasing confidence in" and increased forecasts for SSE's renewables and networks businesses, both of which it noted were key for the energy transition.

The German bank also noted that it feels current high and volatile energy prices highlighted "the value and importance" of the group's flexible generation business and added that recent acquisitions reinforced this view.

"We raise our forecasts for the business to reflect the increase in its investment in renewables and networks. Our EPS forecasts increase by 34%/29%/21% for 2022E/2023E/2024E respectively. The risk/reward balance also looks attractive, with our blue-sky/black-sky valuation range giving 37% upside to 15% downside," said the analysts.

Berenberg also hiked its target price on the stock from 1,690.0p to 2,200.0p.

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