Report
Andrew Bischof, CFA
EUR 98.48 For Business Accounts Only

SSE's Adjusted EPS to Decline in 2018; High Political Risk to Continue Weighing on the Share Price

We reaffirm our fair value estimate of GBP 1,550 per share ($20 per ADR), along with our narrow economic moat and stable moat trend ratings, after SSE beat its 2016-17 guidance and issued 2017-18 guidance involving a decline in adjusted EPS. Adjusted EPS came in at GBP 1.25, above the GBP 1.20 guided by the group. 
Full-year results were boosted by a rebound in the wholesale division's operating profit. A steep increase in profitability for power generation, owing to a jump in production from ga...
Underlying
Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Andrew Bischof, CFA

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