Drax Group (LSE:DRX) received a big price target upgrade from US bank Jefferies after its confident half-year update last week.
A new share buyback and dividend increase were well received by the market and earnings forecasts for the next four years have been raised by 4%.
Jefferies’ price target is now 750p, reflecting what the bank says is increased visibility on Drax's longer-term earnings power from non-biomass generation.
Trading 3.4 times earnings/enterprise value, a 20% discount to the three-year average, it’s still a buy says the bank.