Romanian brokerage house issues “buy” recommendation for Nuclearelectrica shares
Romanian brokerage house Goldring anticipates that the shares of state-controlled power producer Nuclearelectrica (SNN) will increase by another 16% in the next 12 months.
Goldring estimates a target price of RON 19.19 and has issued a "buy" recommendation for Nuclearelectrica shares, which are traded now around RON 16.5-16.8, Wall-street.ro reported.
Nuclearelectrica has been among the top 10 most traded stocks on the local market in the last 12 months, and the share price has increased by 17.5% compared to a 9% decline for the Romanian blue-chip index (BET) in the same period. In addition to the share price increase, Nuclearelectrica also offered among the highest dividend yields on the local market.
In September, Nuclearelectrica's shares were also included in FTSE Russel's Global All Cap indices as Romania was promoted to emerging market status.
Nuclearelectrica operates Romania's Cernavoda nuclear power plant, being the country's third-biggest electricity producer. In the first half of this year, Nuclearelectrica recorded a net profit of RON 343 mln (EUR 71 mln), 18% higher than in the same period of 2019. The company currently has a market capitalization of just over EUR 1 bln.
(Photo source: Maximusnd/Dreamstime.com)