Deutsche Bank announced on Thursday that it had initiated a watch on Neoen shares with a 'hold' recommendation and a price target of 27 euros.

In a research note, the analyst hails the 'rapid' growth of the renewable energies sector, but believes that the French group is now well valued on the stock market.

Neoen's renewable energy projects are progressing well, the group has made significant gains on its power plant disposals, its business history is correct, it recently raised its targets and appears well capitalized", explains Deutsche Bank.

However, the analyst is concerned about the company's high level of debt and, above all, the ambitious forecasts set by the market consensus, with respect to which he sees a risk of disappointment in the order of 15% to 20% by 2023-24.

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