CEZYY - CEZ: Earnings At Risk Amid Sharp Drop In Electricity Prices

2024-02-16 11:53:29 ET

Summary

• The recent decline in electricity prices in Europe is anticipated to have a negative impact on earnings, leading to the likelihood of a dividend cut.
• Significant investment plans are posing an additional threat to the bottom line.
• The windfall tax implemented by the Czech government has resulted in a substantial reduction in profits, significantly impacting the company's financial performance.

CEZ, a.s. ( OTCPK:CEZYY ) is facing huge headwinds caused by a significant decline in electricity prices in Europe. This decline will negatively affect the bottom line and dividends. As a result, the stock price will follow. I see no reason for owning the stock now....

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