Centrica share price: target price increase from Credit Suisse

Centrica share price: target price increase from Credit Suisse

Analysts at Credit Suisse have today reiterated a stock rating of ‘outperform’ on shares of Centrica PLC (LON:CEN) with a new target price of 180 GBX. This is a further raise on the target price of 170 GBX which was previously set by Berenberg in July.

Credit Suisse indicate upside of 25.8%

The new rating and target price implies that the broker analysts predict the stock is under rated against the benchmark and indicates a potential upside 25.8% on the company’s current standing on the FTSE 100 index of 142.80 GBX +0.80 (0.56%).

Investors unsure about Centrica PLC future

Centrica PLC (LON:CNA) has one of the highest dividend yields in the FTSE 100 (currently set at 8%) but investors remain uncertain about the company’s future as it is set to face regulation and political changes and carries out plans to reduce costs and change business models from oil and gas exploration to domestic energy supply and management. This uncertainty has seen the overall share price steadily rise by 18% since its drop to a 5 year low of 124p in February 2018.

Variable rate price cap makes company future uncertain

With a variable rate price cap set to be put in place later this year, which could have big implications for the company's standing on the FTSE 100, it remains to be seen if Centrica PLC can maintain its steady rise on the index. Utility giant SevernTrent also  (LON:SVT) received a reiteration by HSBC analyst today, with the recommendation being set at ‘hold’. Broker analysts at HSBC set a new target price of 2100GBX which is a 7.3% rise on their current index standing of 1,958.00 GBX +22.50 (1.16%)

As of 14:03 BST, Tuesday, 28 August, Centrica PLC share price is 232.70p.

By Alison Bishop
Alison is our leading cryptocurrency ICO reporter, boasting a technical development background and over 6 years working with blockchain technology.

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