SSE PLC

SSE: XLON (GBR)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	GBX 2,972.00	Strv	Yqsmtxvl

SSE Earnings: In Line With Expectations; Confirms 2027 Guidance Despite Lower Power Price Assumption

Tancrede Fulop

May 22, 2024

We confirm our GBX 2,200 fair value estimate after no-moat SSE released fiscal 2024 results in line with FactSet consensus and our expectations. It also confirmed its 2027 EPS target despite lowering its underlying power price assumption. As planned since November 2021, the group rebased its dividend to GBX 60 for fiscal 2024 from GBX 96.7 paid on 2023 results. The firm maintains its guidance of 5%-10% annual dividend growth through 2027. Shares appear undervalued.

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