Broker snap: SSE upgraded on potential 2012 upside

8th Apr 2011 10:03

Credit Suisse upgrades energy supplier Scottish & Southern Energy (SSE) from 'neutral' to 'outperform', saying that while last year's results will see many adverse earnings impacts, earnings growth could be strong from here on.The broker says that volumes in the full year ended March look likely to be at the lowest levels since 2004, thus leaving scope for further upside in future years."We see SSE as a beneficiary from the UK CO2 floor price introduced by the UK government. It will help generators to achieve higher power prices, and help expedite retirements of inefficient power plant," said analyst Mark Freshney.The target price is hiked up to 1,400p, from 1,225p.---bc