Morgan Stanley sees no upside potential for Hidroelectrica's shares
<p>Morgan Stanley has maintained its target price of RON 95 for Romanian power producer Hidroelectrica's shares (BVB: H2O) after a downward revision of the company's 2024 budget.&nbsp;</p>

<p>The current trading price of Hidroelectrica shares on the Bucharest Stock Exchange is RON 129, significantly above Morgan Stanley's target.&nbsp;</p>

<p>The company's revised budget projects a net profit of RON 4.15 billion for 2024, 2025, and 2026, which is below analysts' expectations.&nbsp;</p>

<p>The dividend yield is estimated at 6.7%, considering a 90% payout ratio, which is close to the current yield of Romanian 10-year bonds of 6.9%.&nbsp;</p>

<p>"Thus, we consider that the current valuation of the shares of the shares is high, and we maintain our underexposure rating on this stock," reads a Morgan Stanley note signed by Arthur Sitbon, CFA, equity analyst, quoted by <a href="https://www.zf.ro/burse-fonduri-mutuale/morgan-stanley-pastreaza-pretul-tinta-95-lei-actiunile-22435533?mc_cid=a8f7704823&amp;mc_eid=cd1f92f96c" rel="noopener" target="_blank">Ziarul Financiar</a>.&nbsp;</p>

<p>The company's market capitalization stands at RON 57.9 billion, with shares trading at a P/E ratio of 9.7 times the net profit.</p>

<p><em>andrei@romania-insider.com</em></p>

<p><em>(Photo source: Inquam Photos/Octav Ganea)</em></p>