Centrica Sharply Downgraded by Analysts

Morningstar analysts have slashed their fair value estimate for the British Gas owner by 100p to 150p a share

Morningstar Equity Analysts 28 November, 2017 | 11:47AM

British Gas bill

Centrica (CNA) has been downgraded by Morningstar analysts in the light of last week’s profit warning, which knocked 20% of the British Gas owner’s market value.

We have slashed our fair value estimate for Centrica to 150p per share from 250p because of a deterioration in profitability – the shares are currently trading around 140p. We have cut our 2017-21 earnings per share estimates by 46% on average due to more bearish assumptions for the UK home, UK business, US business, and storage divisions.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Centrica PLC39.65 GBX1.02

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Morningstar Equity Analysts  Morningstar stock and fund analysts cover 2,000 mutual funds, 2,100 equities, and 300 exchange-traded funds.

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