Centrica has received a rare 'sell 'recommendation, with analysts at Liberum arguing that all the good news and recent self-improvement are now in the price.
Shares in the British Gas owner have rallied 75% year-to-date fuelled by increased buybacks and dividend growth, but that now looks has been overdone, says the broker.
“On balance, we believe Centrica’s current valuation reflects an overly optimistic view of the company’s long-term cash return and investment plans, as market normalisation leads to a declining EPS profile (minus 32% CAGR 2023-27).
“We therefore believe the current share price represents a compelling opportunity for investors to take profits,”
'Sell' is the verdict with a 150p target price.