ENGIE: Slight adjustments made following H1-2018 earnings release
ENGIE: (BUY, Fair Value EUR15,5 (+12%))Slight adjustments made following H1-2018 earnings release
Following Engie’s H1-2018 earnings release, we have slightly updated our 2018e-2020e numbers. Our main adjustments include the disposal of Engie’s 69% stake in Glow as well as a lower than expected tax rate for 2018e, explaining partly why we are now back in the range of Engie’s EUR2.45-2.65bn guidance. Our FV is unchanged at EUR15.5/share. Our buy recommendation is maintained with still attractive valuation vs. peers and historical multiples. In our view, the February 2019’s CMD could now highlight the need for Engie to geographically rebalance its portfolio, too exposed to France (~50% of the group’s EBITDA). We would still view positively the acquisition of EDPR’s US assets (~EUR600m of EBITDA) that we value at around EUR6bn.
Engie is an industrial group, based in France, active in the fields of gas, electricity, energy services and the environment. Co. is an energy provider across the entire energy chain, in electricity and in natural gas, including: purchase, production and commercialization of natural gas and electricity; transport, distribution, management and development of major natural gas infrastructures; design and commercialization of energy services and environment-related services. Co.'s activities are conducted through five segments: Energy Europe, Energy International, Global Gas and LNG, Infrastructures, and Energy Services.
Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.
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