On Tuesday, Bank of America downgraded its recommendation on Engie shares from 'buy' to 'underperform', with a price target reduced from 19 to 12 euros.

In a note on European utilities released this morning, the research firm explains that the risks surrounding the French energy group's results are, in its view, tilted to the downside.

BofA points out that its initial targets, which foresaw significant upside potential for earnings, have been cancelled out by, among other things, the increase in provisions for nuclear power in Belgium.

The analyst also considers the French government's mechanism for recovering excess revenues from electricity producers to be one of the most penalizing in Europe, again to Engie's detriment.

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