Jefferies Financial Group Issues Pessimistic Forecast for Drax Group (LON:DRX) Stock Price

Key Points

• Jefferies lowered its price target for Drax Group from GBX 920 to GBX 870 while maintaining a “buy” rating, implying roughly 18% upside from the prior close.
• Analyst sentiment remains broadly positive, with RBC reiterating an “outperform” rating; MarketBeat lists a consensus rating of “Moderate Buy.”
• Drax shares opened at GBX 737 and were down 0.5%, trading below both their 50-day and 200-day moving averages. The company most recently reported quarterly EPS of GBX 29.80.

Drax Group (LON:DRX - Get Free Report) had its price objective lowered by investment analysts at Jefferies Financial Group from GBX 920 to GBX 870 in a research note issued to investors on Wednesday,London Stock Exchange reports. The brokerage currently has a "buy" rating on the stock. Jefferies Financial Group's target price would indicate a potential upside of 18.05% from the stock's previous close.

Several other equities analysts have also issued reports on DRX. Royal Bank Of Canada reiterated an "outperform" rating and issued a GBX 1,000 price objective on shares of Drax Group in a research report on Wednesday, May 6th. Citigroup lowered their price objective on shares of Drax Group from GBX 9,230 to GBX 8,160 and set a "neutral" rating for the company in a research report on Friday, June 5th. Two investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of GBX 3,343.33.

Drax Group Trading Down 0.5%

Shares of LON DRX opened at GBX 737 on Wednesday. Drax Group has a twelve month low of GBX 613.90 and a twelve month high of GBX 937.50. The stock has a market cap of £2.48 billion, a price-to-earnings ratio of 86.71, a P/E/G ratio of 0.10 and a beta of 0.62. The company has a quick ratio of 0.32, a current ratio of 1.07 and a debt-to-equity ratio of 68.79. The company's fifty day moving average is GBX 759.34 and its 200-day moving average is GBX 831.31.

Drax Group (LON:DRX - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported GBX 29.80 earnings per share for the quarter. Drax Group had a return on equity of 1.10% and a net margin of 0.37%. Equities research analysts predict that Drax Group will post 97.4732006 EPS for the current year.

About Drax Group

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.

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