SSE (SSE LN) Buy: Earnings inflection with near-term catalysts

研报英文原文证据摘录

SSE (SSE LN) Buy: Earnings inflection with near-term catalysts

8 June 2026

SSE (SSE LN) EquitiesMulti-Utilities

Buy: Earnings inflection with near-term catalysts United Kingdom

◆ FY27 earnings inflection (HSBCe: +19% yoy) driven by MAINTAIN BUY

network investments & capacity payments

TARGET PRICE (GBPp) PREVIOUS TARGET (GBPp)

◆ Upcoming renewables auctions, network investments and

3,000 3,000 data centre demand support EPS growth beyond FY30

◆ Maintain Buy rating and TP of GBp3,000 SHARE PRICE (GBPp) UPSIDE/DOWNSIDE

2,388 +25.6%

Main takeaways from FY26 results: i) SSE is well positioned and delivering on the (as of 04 Jun 2026)

significant step-up in network investments. Transmission net capex increased 80% MARKET DATA

YoY in FY26 and execution is on-track with 5 out of 11 major projects under Market cap (GBPm) 28,947 Free float 100%

Market cap (USDm) 38,860 BBG SSE LN

construction and c75% of major consents secured. ii) Dogger Bank B turbine 3m ADTV (USDm) 140 RIC SSE.L

installations are running 3x faster compared to Dogger Bank A, reflecting operational

FINANCIALS AND RATIOS (GBPp)

improvements with the latter expected to be commissioned by 1Q27. iii) Renewables Year to 03/2026a 03/2027e 03/2028e 03/2029e

growth beyond 2030: the AR8 renewables auction opens in July and SSE has at HSBC EPS 153.53 182.83 204.16 225.26

HSBC EPS (prev) 150.50 182.04 210.62 224.85

least 3GW of eligible offshore wind capacity; an update on the Coire Glas (1.4GW) Change (%) 2.0 0.4 -3.1 0.2

pumped hydro project is expected in summer 2026. iv) SSE management continues Consensus EPS 150.30 182.62 207.50 229.53

PE (x) 15.6 13.1 11.7 10.6

to err on the side of caution regarding data centre demand having a material impact Dividend yield (%) 2.9 3.1 3.3 3.6