SSE upgraded to Neutral from Sell at Citi

Citi upgraded SSE (SSEZY) to Neutral from Sell with a 1,712 GBp price target following a period of underperformance with the shares down -17% over the last three months. The firm’s more bearish view back in October reflected the mismatch between the valuation and the risk of balance sheet concerns, as well as potential risk around REMA/zonal pricing. Given the share price weakness, Citi believes some of these risks are now better reflected in the shares given what is known today.