Analyst Note| Tancrede Fulop, CFA |
No-moat Electricite de France released weak first-half results because of its short electricity position, driven by its French nuclear plants' outages, and the regulatory increase in volumes it must sell at cheap prices to its competitors. The group increased its estimate of the full-year impact of these headwinds due to soaring power prices. All in all, we maintain our EUR 12 fair value estimate, aligned with the tender offer price from the French government. Shares are driven by risk arbitrage.