Jefferies Financial Group Reiterates Buy Rating for Drax Group (LON:DRX)

Key Points

• Jefferies Financial Group reiterated its “Buy” rating on Drax Group and maintained a GBX 920 price target, implying approximately 25.4% upside from the prior close.
• Analyst sentiment remains positive overall, with Drax holding a consensus “Moderate Buy” rating, though Citigroup recently downgraded its outlook to “Neutral” and cut its target price.
• Drax shares opened 1.5% lower at GBX 733.50, while the company reported quarterly earnings of GBX 29.80 per share and maintains a market capitalization of about £2.47 billion.

Drax Group (LON:DRX - Get Free Report)'s stock had its "buy" rating reiterated by analysts at Jefferies Financial Group in a research report issued to clients and investors on Friday,Digital Look reports. They currently have a GBX 920 price objective on the stock. Jefferies Financial Group's target price would indicate a potential upside of 25.43% from the company's previous close.

DRX has been the subject of several other research reports. Citigroup lowered their price objective on 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. Royal Bank Of Canada restated an "outperform" rating and issued a GBX 1,000 target price on shares of Drax Group in a report on Wednesday, May 6th. Two investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, Drax Group has a consensus rating of "Moderate Buy" and a consensus price target of GBX 3,360.

Drax Group Stock Down 1.5%

DRX opened at GBX 733.50 on Friday. Drax Group has a 12 month low of GBX 613.90 and a 12 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 62.90. The business's 50-day moving average price is GBX 774.30 and its 200-day moving average price is GBX 840.68. The company has a market cap of £2.47 billion, a P/E ratio of 36.31, a P/E/G ratio of 0.10 and a beta of 0.62.

Drax Group (LON:DRX - Get Free Report) last issued 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 3.94% and a net margin of 1.35%. On average, equities analysts expect that Drax Group will post 97.4732006 EPS for the current 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.

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