SSE should post bumper full-year results on May 24 with the added kicker of an increase in medium-term earnings guidance as well, predicts JP Morgan
How well that sits with customers still smarting from soaring energy bills and politicians a year ahead of an election remains to be seen, but that’s not the US bank's concern
Analysts expect earnings of 164p, compared to company guidance of more than 160p, while its forecast of 151p for 2026 implies sharply higher revenue growth than previously.
“Higher earnings from renewables (capacity additions, higher power prices and indexation of subsidies to inflation) as well as networks (higher growth + inflation-linked revenues),” will drive the guidance upgrade, believes the bank.
Capex is also likely to rise said the bank, given recent regulatory decisions in both electricity transmission and distribution.
Overweight is the bank’s investment view with a 2,100p price target.