The analysts at Morgan Stanley have downgraded their recommendation on Erg, leader of clean energy from renewable sources in Europe and listed on Euronext Milan, from Equal-weight to Underweight, with the target price revised from 26.80 euros per share to 27.30 euros per share.
The downgrade on the Italian utility’s stock comes amid a series of revisions in the European sector. There was also a cut from Equal-weight to Underweight on Endesa, one of the three largest companies in the electricity sector in Spain.
Recent analysis predicted European nations will experience growing pains from a switch to renewable sources of energy including wind power.
Some factors are the intermittent nature of these sources; the electricity demand expected to increase steadily; the growing need for skills related to new and emerging technologies. Power prices have touched new highs. This volatility poses a challenge for utilities, traders, and large power consumers. (Redazione)