Citing the lower price of electricity, the analysts of the US investment bank Morgan Stanley revised downwards the target price for the shares of the Romanian green energy producer Hidroelectrica from RON 110 to RON 95, (around 19 euros) which was about 26.5% less compared to the over RON 129 closing price on January 19.
Hidroeelctric’s price lost another 3.4% on January 22 after the Morgan Stanley analyst report was published.
This downward revision comes after another negative assessment published last week. In a note to investors on January 16, Citigroup issued a target price of RON 109 for Hidroelectrica’s shares – 17.9% below the trading price at that time, and gave a “sell” recommendation.
Morgan Stanley explains its downward revision by an environment of lower electricity prices. – The recent correction of the price of electricity to EUR 85 per megawatt, from EUR 120 in the last three months, is not reflected in the increase in the price of H2O shares in the same period,” Morgan Stanley’s analysts argued, tagging Hidroelectrica’s shares as “underweight”.
