Patria issued a new CEZ report yesterday. Since the tender cancellation is already fully reflected in the current share price, we believe that the upside should prevail now due to the strong fundamental valuation of CEZ. Therefore, we reiterate our short- and long-term buy recommendations, with a target price of CZK 110 per share.
S&P confirmed CEZ’s debt rating, though it downgrade its outlook from positive to neutral, citing the expected decrease of electricity wholesale prices as a main reason. Moody’s confirmed its CEZ rating as well, with a stable outlook. No impact on the stock is expected.
The State Nuclear Safety Office declared that 100%-capacity tests could begin at the Temelin nuclear power plant. Expected.
(Jiri Soustruznik)