ANALYST VIEWS: HOW DO YOU RATE CENTRICA?
KEITH BOWMAN HARGREAVES LANSDOWN
The results continue to underline management’s strategy to create a more balanced business. The expanding upstream business has effectively compensated for more difficult conditions for its downstream supply operations. In all, the progressive dividend policy remains attractive. Its diversified energy play continues to grow. We say Buy.
GRAHAM SPOONER THE SHARE CENTRE
The share price has underperformed in the last 12 months and at this level it looks more attractive for income seekers. However, any potential increase could be somewhat limited. We continue to recommend Centrica as a “buy” for investors looking for a low-risk income stock. Investors will be pleased to hear the company has increased its dividend.
ANGELOS ANASTASIOU | INVESTEC
Confidence still needs to be regained in the UK supply market. But we reiterate that we believe that the share price is already factoring in an unreasonably pessimistic scenario on the supply side. Risks posed to Centrica’s business include political interference, regulatory changes and movements in wholesale energy prices.