Berenberg announced on Wednesday that it had lowered its target price for Neoen from €40 to €33 to take account of the renewable energies specialist's recent capital increase.

The research firm - which is maintaining its 'hold' recommendation on the stock - believes that the €750 million fundraising will enable the group to clear the way for its development.

However, the analyst also points out that the share is still trading at a premium to its closest comparables, even if this premium has narrowed due to the share's underperformance since the start of the year.

The capital increase provides the company with adequate funding to achieve its growth objectives, but accelerating the pace of its development - accompanied by robust profitability - remains the most important challenge facing the company", concludes Berenberg.

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