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SSE is back in focus as fresh analyst work refines price targets, with fair value in the updated model set at £27.50 per share and recent Street targets shifting between 2,650 GBp and 2,950 GBp. These adjustments, which include moves such as JPMorgan’s 345 GBp uplift and trims from 2,950 GBp to 2,900 GBp, reflect a mixed but generally constructive view on how the stock’s valuation lines up with progress on growth projects and earnings quality. Read on to see how to interpret these changes and keep track of the evolving analyst story around SSE.
Stay updated as the Fair Value for SSE shifts by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on SSE.
What Wall Street Has Been Saying 🐂 Bullish Takeaways
Both Morgan Stanley and Deutsche Bank keep positive ratings on SSE, with Morgan Stanley at Overweight and Deutsche Bank at Buy, which signals continued support for the stock despite the recent price target trims.
JPMorgan previously lifted its target on SSE by 345 GBp, which adds another supportive datapoint around the company’s valuation and prospects within its project pipeline.
🐻 Bearish Takeaways
Deutsche Bank has reduced its SSE price target to 2,650 GBp from 2,900 GBp, which points to a more cautious stance on how current execution and growth projects line up with earlier expectations.
Morgan Stanley has adjusted its target to 2,900 GBp from 2,950 GBp, suggesting some pressure on the prior upside case as analysts revisit assumptions around earnings quality and future delivery.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives!
LSE:SSE 1-Year Stock Price Chart
We’ve flagged 2 risks for SSE. See which could impact your investment.
How This Changes the Fair Value For SSE
Fair value is set at £27.50 per share in the updated model, compared with £27.66 previously.
Revenue growth is set at 6.40% in the update, versus 5.91% in the prior model.
The net profit margin assumption is 25.02% in the updated model, compared with 24.36% previously.
The future P/E is 16.38x in the update, versus 17.16x in the prior model.
The discount rate is held at 7.38% in both the updated and prior model.
Never Miss an Update: Follow The Narrative
Narratives connect SSE’s business story to a set of financial assumptions and a fair value estimate, updating as new data and news come through. They help you see how projects, risks and management decisions tie back to expected earnings.
Head over to the Simply Wall St Community and follow the Narrative on SSE to stay up to date on:
SSE’s £20b capital investment plan to 2027 across renewables and electricity networks, aimed at expanding its asset base and regulated network exposure.
How growth in networks and renewables projects such as offshore wind and battery storage feeds into more stable, higher net margin assumptions.
Key risks from leadership transition, large project delays such as Dogger Bank, rising adjusted net debt and reliance on supportive government and carbon pricing policies.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SSE.L.
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