On Tuesday, ČEZ shares reached their peak so far this year, when the value of one of them rose to CZK 1,047, which was equal to a 36 percent increase since the beginning of the year.
No other company on the Prime Market has achieved such a large growth. The closest banks on Tuesday were Erste (+19%) and Komerční banka (+14%).
According to Komerční banka’s stock analyst Bohumil Trampota, this is a very strong result, which is probably a reflection of the company’s vision of restructuring and the associated high premiums.
CEZ also makes energy cheaper. It offers fixations with a gradual decrease in price
Economic
“This is where the majority owner should offer to small shareholders for control of the entire company,” Trampota told Novinkám.
Also according to Marek Pokorný, an analyst at the Port investment platform, speculation about the division and nationalization of the company was the main reason why the shares have grown so significantly so far this year.
“This caused speculation among minority shareholders that the state could offer them more for their shares than their market price in the event of nationalization,” he told Novinkám.
Quick realization of profits
However, since Tuesday, CEZ shares have been falling again. On Friday around 2:00 p.m., they depreciated by 2.8 percent compared to the previous day, and the value of one share was CZK 988.
The price is again slightly below the 1000 CZK mark. “In my opinion, it’s just making quick profits. Since the beginning of the year, ČEZ has crossed the threshold of 800, 900 and 1000 CZK,” Trampota explains.
According to Pokorný, the recent Czech Radio interview with billionaire Pavlo Tykač, owner of the energy group Sev.en Energy, who himself owns three percent of ČEZ shares, may also have contributed to the decline.
“Tykač does not believe in the nationalization of ČEZ and, in his opinion, the government will not be ready to pay the amount that comes out of the expert opinion,” the analyst pointed out, and at the same time mentioned one more negative factor that could negatively affect the price.
This is a change in the investment recommendation of the American bank Citibank, which currently recommends selling ČEZ shares.
However, ČEZ shares will do well in the future, according to Trampota. In the second half of March, the company will publish the results for last year, which will be the absolute best in history.
“And that promises a really high dividend. Furthermore, the outlook is that despite all the special taxes, the results will be very strong in the years to come, which again indicates a high dividend yield,” said Trampota.
About a year ago, CEZ shares were around CZK 830. Then, due to high profits due to expensive energy, they grew sharply, and in June 2022 they even exceeded the threshold of CZK 1,200 per share.
But in the fall, there was more talk about the introduction of a tax on windfall profits, which gradually weakened shares.
ČEZ will pay a record dividend
Economic
