EDF posted poor Q1 2016 sales yesterday after
market due to unfavourable weather and FX effects and most importantly, due to
thr end of Yellow and Green regulated tariffs in France. Activities in the UK
were also affected by stronger competition in power and gas sales. Despite this
poor year start, 2016 operating targets were reiterated as was the 2018 target.
We are making no change to our estimates and maintain our FV at EUR13.5/share.
We continue to believe that at the current share price, most downside risk is
already well priced in.
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