Drax Group (LON:DRX) Receives "Outperform" Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated an "Outperform" rating on Drax with a GBX 1,000 price target, implying roughly a 14% upside from the current share price.
• Other brokers are also bullish—Citigroup and Jefferies recently raised targets to GBX 923 and GBX 1,120 respectively, and the stock has a consensus Buy rating with a consensus target of GBX 1,010.75.
• Drax trades around GBX 877.40 (12‑month range GBX 601.50–937.50) with a market cap of £2.95bn and a high valuation (P/E ~43.4) while reporting slim profitability (net margin ~1.35%).

Drax Group (LON:DRX - Get Free Report)'s stock had its "outperform" rating reiterated by analysts at Royal Bank Of Canada in a report released on Wednesday,Digital Look reports. They presently have a GBX 1,000 price objective on the stock. Royal Bank Of Canada's price target points to a potential upside of 13.97% from the stock's current price.

Several other equities analysts have also weighed in on DRX. Citigroup raised their price objective on shares of Drax Group from GBX 850 to GBX 923 and gave the company a "buy" rating in a research report on Thursday, February 12th. Jefferies Financial Group raised their price objective on shares of Drax Group from GBX 750 to GBX 1,120 and gave the company a "buy" rating in a research report on Wednesday, January 7th. Four research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus target price of GBX 1,010.75.

Drax Group Stock Performance

LON:DRX opened at GBX 877.40 on Wednesday. Drax Group has a twelve month low of GBX 601.50 and a twelve month high of GBX 937.50. The company has a current ratio of 1.07, a quick ratio of 0.32 and a debt-to-equity ratio of 67.01. The company has a 50-day moving average of GBX 876.58 and a 200-day moving average of GBX 832.32. The firm has a market cap of £2.95 billion, a price-to-earnings ratio of 43.44, a price-to-earnings-growth ratio of 0.10 and a beta of 0.68.

Drax Group (LON:DRX - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The company reported GBX 137.70 earnings per share for the quarter. Drax Group had a net margin of 1.35% and a return on equity of 3.94%. Analysts forecast that Drax Group will post 97.4732006 earnings per share for the current fiscal year.

Drax Group Company Profile

Drax Group plc, together with its subsidiaries, engages in renewable power generation in the United Kingdom. It operates through three segments: Pellet Production, Generation, and Customers. The Pellet Production segment produces and sells biomass pellets. The Generation segment provides renewable, dispatchable power, and system support services to the electricity grid. The Customers segment supplies electricity and gas to non-domestic customers. The company owns and operates Drax Power Station located in Selby, North Yorkshire; Cruachan Power Station, a pumped storage hydro station, with an installed capacity of 440 megawatts (MW) located in Argyll and Bute; and Lanark and Galloway hydro-electric power stations with an installed capacity of 126 MW located in southwest Scotland.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.