PARIS, April 6 (Reuters) - Shares in French utility stocks rose on Friday as Suez and Engie benefited from bullish broker notes.
Suez rose 2.7 percent in early session trading, the top performer on Paris’ SBF-120 index, with traders attributing its gains to brokerage Raymond James’ decision to upgrade the stock to “outperform” from “market perform”.
Veolia also rose 1.1 percent while Engie advanced 0.8 percent, with Citigroup resuming its analysts’ coverage of Engie with a “buy” rating on the stock.
“Reformed corporate governance, above average earnings per share and dividend per share growth and improved financial communication are on the cards and could help investor sentiment further,” wrote Citigroup, regarding Engie’s shares.
Utility stocks are also often favoured during times of market volatility, due to their solid cash-flow and dividends. (Reporting by Sudip Kar-Gupta; Editing by Geert de Clercq)