On Wednesday, Morgan Stanley raised its recommendation on Neoen shares from "underweight" to "weight in line", with a price target reduced from €33 to €32.

In a research note, the financial intermediary explains that it perceives fewer downside risks surrounding the energy company now that market forecasts to 2025 have been revised and its capital increase has been finalized.

While acknowledging that the share's valuation is now less strained, the analyst stresses that it is still far from cheap, explaining that he is waiting for greater visibility on the group's value-creation potential in renewable energies before being more "constructive" on the dossier.

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