SSE LN – Great way to play ESG, +25% upside on the short/medium term

*Top renewable pick, still heavily discounted compared to the peers

*Remains on track with investment program which will make them a top renewable player in Europe with considerable potential for future growth above and beyond

*The company also expects to triple its renewable capacity by 2030 in a period where we recently saw the ruling that RDS has to cut CO2 emissions by 45% by 2030 – this leaves significant upside for SSE on its renewables assets both from a valuation perspective but as a target themselves in case they split the businesses

*Capex plan of GBP 7.5bn on track to 2025 with much of it already contracted – main focus of program is SSE Renewables projects

*The company is also doing a disposal program where it is getting rid of its contracting and rail business this month and its Gas production by the end of the year and also looking to sell its stake in SGN mid-summer with completion set for year-end which should result in them exceeding the GBP 2bn cash processed from asset disposals (compared to its GBP 15bn market cap) and thereby provide another medium term catalyst

*Recently we have seen a trend of companies looking to divest some of its renewable business – The largest ones recently being Siemens and Repsol – this could also add another angle as a potential catalyst

*ANR shows 11 Buys, 7 Holds and 1 Sell

*Our peer valuation shows a 30% upside for SSE with a price target of 2000p