Charles Stanley upgrades Centrica to 'hold' post UK election

17th Jun 2015 15:26

Charles Stanley lifted Centrica's rating from 'reduce' to 'hold,' citing certainty in the market following the re-election of a Conservative majority. The brokerage said the outcome of the UK general election removed a key threat for the energy company.It said that as the largest household supplier, Centrica was the most exposed to a new regulatory regime which the Labour Party had proposed if it formed a government.Charles Stanley set the company's 12 month price range for the stock at 235-325p.Analyst Tina Cook said in a note that progress was being made on self-help initiatives and the company's strategic direction is expected to be clarified in July.While a Competition and Markets Authority review into energy providers was underway, industry watchers did not anticipate the review to call for the Big Six to be broken up, Cook said.Shares in the stock were trading up 2.13% at 273.15p on Wednesday at 15.47.