SSE Share Price Forecast September 2021 – Time to Buy SSE Stock?

Shares of Scotland-based multinational energy company SSE (LSE: SSE) are in the green today, currently trading around the 1676p range. SSE is one of the top renewable shares that an investor can get as it has increased year to date by over 7%. All of this has got investors wondering whether it’s the right time to pick up SSE shares.

SSE – Technical Analysis

According to the company’s financial statement, the market cap is at £17.181 billion with total assets worth £21.592 billion. Revenue for SSE for 2020 was at £6.83 billion with a profit margin of 33.34%, compared to 2019’s £6.80 billion.

Oscillators for SSE such as Relative Strength Index (14)(62.5), Stochastic %K (14, 3, 3)(74.7),  Commodity Channel Index (20)(156.0) and Average Directional Index (14)(27.5) are indicating a neutral action. On the other hand, moving averages such as Exponential Moving Average (100)(1557.5), Simple Moving Average (100)(1549.5), Exponential Moving Average (200)(1503.5), Simple Moving Average (200)(1503.5) are indicating a buy action.

67% of all retail investor accounts lose money when trading CFDs with this provider.

Recent Developments

SSE is the second largest big 6 energy supplier in the United Kingdom currently with 9.1 million customers under its belt. The share price struck 1686p before the March 2020 crash. After the pandemic, environmental concerns and oil supply chain issues have been put at the forefront. SSE has set a mission for renewable energy which will be benefitted from these twin pressures mentioned above. SSE generated about 4GW hydro and wind power and it expects to treble its renewable energy output between 2019 and 2030.

With a long-term ambition of achieving net-zero emissions by 2050, the company offers its customers an opportunity to upgrade to its Go Green energy tariff for an extra £3 per month. The company set out a £4.1 billion investment plan in its recent Q1 trading statement and plans to dispose of assets worth £2 billion that don’t go along with the company’s net-zero objectives. The proceeds from this disposal will be used to finance Dogger Bank’s offshore wind farm which is the largest of its kind in the world. Apart from this, the company has one of the largest offshore wind development pipelines in the United Kingdom and already owns a wind farm at Viking on Shetland.

Activist investor Paul Singer’s Elliott Investment Management has built up a large stake in SSE and has just called for a breakup of the company into its renewable and regulated electricity divisions. If this shares split were to come into existence, it will be profitable for existing shareholders of SSE.

Should You Buy SSE Shares?

Investors know that renewable energy shares are some of the best long-term investments one can have. This is largely due to the future energy of this planet is limited to only two possible options. We can either use renewable energy or continue extracting fossil fuels until it becomes commercially unviable in the next twenty or thirty years. At its current market cap, SSE pays a reliable dividend of 5% with plans to maintain that level till 2023.

However, there are risks, such as SSE’s prices being limited by the OFGEM (The Office of Gas and Electricity Markets). It allowed a price cap increase of £139  for 2021. However, SSE will encounter increasing regulatory pressure in case it announces any price hike during the current economic situation. SSE has also high levels of debt that will be used to finance its ongoing expenditure. In spite of all this, SSE is still a renewable energy company that investors should look to add to their portfolio.

Buy SSE Stock at eToro for just $50 Now!