We have upgraded our forecasts to take account of better pricing and expansion of biomass. We have also valued new investment in BECCS, expansion at Cruachan and reviewed CCS deployment in the UK. Our base case valuation rises from 551p to 719p with a central valuation including biomass expansion at 846p. If the full investment potential is realised, we see a higher valuation above £10 being achievable.
20 Jan 2022
Drax Group - Strategic Development Adds Value
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Drax Group - Strategic Development Adds Value
Drax Group plc (DRX:LON) | 881 79.3 1.0% | Mkt Cap: 2,978m
- Published:
20 Jan 2022 -
Author:
Adam Forsyth -
Pages:
31 -
We have upgraded our forecasts to take account of better pricing and expansion of biomass. We have also valued new investment in BECCS, expansion at Cruachan and reviewed CCS deployment in the UK. Our base case valuation rises from 551p to 719p with a central valuation including biomass expansion at 846p. If the full investment potential is realised, we see a higher valuation above £10 being achievable.