SSE shares slip, but could £15 billion investment turn the tide?

• SSE share price down 4.9% since mid-January
• Could £15 billion wind farm investment help SSE shares?
• Analysts bullish amid green energy push

Want to trade SSE shares? Open an account today.

SSE (SSE.L) shares opened at £14.58 on 16 February 2021 and dropped 0.4% to £14.52 within the first two hours of trading. The sharp decline mirrors similar bearish movements over the last month. From a peak of £15.29 on 18 January, the SSE share price has fallen by almost 5%. It’s a similar story when you trace back to February 2020.

How have SSE shares fared over the last year?

With Covid-19 throwing the energy markets into a spin, SSE shares fell from £16.86 to below £10.75 before starting a gradual recovery. From the depths of the crisis in 2020, shares in SSE are starting to look healthier. However, the latest data shows that it’s not in the clear just yet. That could all change though. With chief executive Alistair Phillips-Davies announcing a £15 billion expansion plan, the company could become a leading name in renewable energy on the world stage.

As per the announcement, SSE will invest £15 billion over the next decade to become Britain’s first global windfarm business. It’s already planning a major offshore wind farm in Denmark, but that’s just the tip of the iceberg. Phillips-Davies told Mail Online that he aims to make SSE the biggest offshore wind farm company in the world. To that end, spending over the next ten years will focus on projects in the US, Europe and Japan, as well as more investments in the UK.

What can SSE do to position itself as green energy leader?

Phillips-Davies also wants to partner with BP (BP.L) and Shell (RDSB.L) to facilitate their moves towards renewable energy sources. By that measure, SSE is not only positioning itself to become a leader in wind but the go-to name within the green energy market. As more governments commit to reducing carbon emissions, innovations within this sector are bound to take on more significance over the next decade. This fact appears to be keeping analysts interested.

Despite the recent bearish trend, the consensus on SSE shares is split between hold and buy. This split has remained fairly consistent over the last three months, which suggests analysts see long-term value in SSE. The latest announcement can’t help but add weight to the positive outlook. With the SSE share price falling in recent weeks, buy ratings are starting to gain traction.

Could that signal a reversal is on the horizon? Green energy is going to be the buzzword in the next few years and, if SSE can follow through on its commitment, it could make its shares an attractive long-term proposition.

Find out how to invest in wind energy stocks

Can windfarms help SSE shares reverse bearish trend?

Take your position on UK shares for just a small initial deposit with spread bets or CFDs. Spread bets are completely tax-free, while CFDs are free from stamp duty.¹ You can also buy and take ownership of UK shares for just £3 with us.²

Open an account to start trading or investing in UK shares.

Footnotes:

¹ Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
² Deal three times or more in the previous month to qualify for our best rate.