Analyst Note| Tancrede Fulop, CFA |
We cut our fair value estimate to EUR 12 from EUR 13.7 for EDF by incorporating recent political intervention and nuclear outages. The harsh intervention of the French government to limit the rise in electricity bills was largely unexpected. Still, we view the recent pullback as excessive and shares as undervalued. The group is positively exposed to higher interest rates thanks to its large provisions and high power prices in the long run.