Goldring analysts estimate a target price for Nuclearelectrica (SNN) shares, for the next 12 months, of 19.19 lei/share. The estimated target price (of 19.19 lei/ share) is 13.6% higher than the current price of the share (of 16.90 lei/share).

“Due to the first half of 2020 in which the company recorded a net profit up by approximately 18% (compared to that of H1 2019), the estimates for 2020 remain above the result achieved in 2019. Although the increase from semester to semester is of double digits, we estimate that the net result in the second half will be slightly more modest than that achieved in the second half of last year. However, the annual profit will remain on an upward trend, but relatively similar to last year. In terms of revenues, even if they are down by 2% in the first half of this year, we estimate that they will be able to reach a higher level at the end of the year, compared to those recorded in 2019. This estimate it is based on the stability of the energy price on the bilateral markets, but also a recovery of the price on the DAM market, which suffered especially in the second quarter of this year,” the Goldring report shows, according to financialintelligence.ro.

“Nuclearelectrica is a company whose main market advantage is the dividends granted to shareholders. In recent years, the company has managed to offer one of the highest returns on the Romanian capital market (already a market recognized for the high returns that companies give to shareholders). We also expect this dividend policy to continue in the future and also to maintain its growth rate, within the limits of the evolution of net profit and taking into account the need for financing the company.

The share price is already at +18.51% compared to the beginning of 2020, being the third most profitable share this year (from the BET and BET-FI index), without taking into account the gross dividend yield of over 9%, granted in June.”