Drax Group (LSE:DRX) has had its share price target nudged up by analysts at Jefferies, who have been impressed by the visibility on non-biomass earnings.
As a result, the US bank has upgraded its forecasts to a 5% premium to 2024/25, but said, more importantly, there are key catalysts in the next twelve months that could spark a re-rating.
Notably, these include a Drax bridging mechanism consultation due shortly, the BECCS Track-1 development option in the second quarter and BECCS Track-2 in the final quarter of 2024 or early 2025.
Added to an undemanding valuation of three times underlying earnings for this year, the bank has maintained its 'buy' rating with a price target raised slightly to 600p.