Analysts have increased their price target for SSE from £23.00 to £24.25, citing improved outlook and sustained confidence in the company's growth prospects.
Analyst Commentary
Recent equity research reports have outlined both positive and cautious perspectives regarding SSE's future performance. The following summarizes key takeaways identified by market watchers.
Bullish Takeaways
- Analysts highlight increased confidence in SSE's growth outlook, which supports the recent price target upgrade.
- The Overweight rating from JPMorgan signals belief in the company's ability to outperform sector peers over time.
- Positive valuation adjustments reflect expectations for stronger earnings and successful execution of the company's strategic investments.
- Bullish analysts note continued progress in renewable energy initiatives, viewed as a sustainable driver for long-term revenue growth.
Bearish Takeaways
- Some analysts remain cautious about potential execution risks as SSE undertakes significant capital projects to expand its renewables portfolio.
- There is concern that volatile energy markets and regulatory shifts could affect earnings visibility in the near term.
- Cautious perspectives note that while growth prospects are promising, the current valuation already anticipates much of the expected upside.
What's in the News
- On 27 August 2025, SSE announced that 23,080 shareholders elected to receive the final dividend for the year ended 31 March 2025 as a Scrip dividend. This reduced final dividend cash funding by £25.35 million (Key Developments).
- The overall Scrip dividend take-up for the financial year was 9.7%, which was below the 25% cap. As a result, no buy-back to limit dilution will occur (Key Developments).
- 1,369,268 new fully paid ordinary shares will be issued on 18 September 2025, increasing issued share capital by 0.12% compared to the record date of 25 July 2025 (Key Developments).
Valuation Changes
- Fair Value: Revised upward marginally from £22.30 to £22.33 per share. This change reflects a minor positive adjustment.
- Discount Rate: Remains virtually unchanged at 6.82%. This indicates stable assumptions in projected cash flows.
- Revenue Growth: Holds steady at approximately 4.56%. This suggests no material change in expectations for top-line expansion.
- Net Profit Margin: Declined slightly from 20.00% to 19.97%. This signals a modest reduction in projected profitability.
- Future P/E: Increased marginally from 13.08x to 13.12x. This points to a small upward shift in valuation multiples.
Have other thoughts on SSE?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeDisclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.