Verbund shares rise 3% after Deutsche Bank upgrade to Hold

Investing.com -- Verbund shares rose 3.2% to €64.58 on Monday after Deutsche Bank upgraded the Austrian utility to "hold" from "sell" and raised its price target to €60 from €55, citing higher European power prices.

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The upgrade marks a shift after Deutsche Bank had maintained a "sell" rating on Verbund since 2024. The stock had closed at €62.55 on Friday.

Deutsche Bank analyst Olly Jeffery said the improvement in power prices should more than offset the impact of a profit warning the bank expects at some point this year.

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The broker also pointed to the Austrian Constitutional Court's recent questioning of the validity of the country's profit levy, with a ruling expected by year-end.

Deutsche Bank said Verbund had underperformed the sector by about 65% since January 2024 and by around 6% this year, according to the research note.

The broker's revised view reflects its expectation that higher power prices will provide a stronger medium-term earnings backdrop, despite the risk of weaker near-term results.

Verbund is Austria's largest electricity producer, with a generation portfolio heavily exposed to hydropower, making wholesale electricity prices an important driver of its earnings.

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Original Article

Verbund shares rise 3% after Deutsche Bank upgrade to Hold

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