SSE Share Price Fall Excessive, say Analysts

Morningstar analysts expect to lower their fair value estimate for SSE after the profit warning from the FTSE 100 utility

Tancrede Fulop 12 September, 2018 | 2:16PM
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Shares in FTSE 100 utility company SSE (SSE) fell sharply as it warned on its 2019 financial year profits, owing to adverse weather conditions and high gas prices. As a result of the profit warning, Morningstar analysts will cut SSE's 2019 earnings estimates by a double-digit percentage and will reduce the fair value estimate by a mid-single-digit percentage.

For the moment, we reiterate our fair value estimate of £14.70 per share but we believe the share price reaction is excessive. The current share price is around £11.52 and the company has a four-star rating from Morningstar.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
SSE PLC1,664.50 GBX0.76Rating

About Author

Tancrede Fulop  is an Equity Analyst for Morningstar

 

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