- Equity research analysts at Barclays Capital have upgraded their investment rating on Drax [LON:DRX] to overweight (from equal weight), believing the post-results stock weakness is unjustified.

The bank pointed out that the shares have fallen 20% since the results in mid-February, which it said was based on little more than disappointment that it didn't immediately announce a new higher dividend policy.

Barclays said: "We understand Drax's consultation is a genuine attempt to balance priorities of growth capex and increased returns to shareholders.

"We thus see no justification for the scale of Drax's recent share price reversion, and upgrade to OW."

Price target increased to 410p per share (from 400p).

At 3:39pm: [LON:DRX] Drax Group PLC share price was +20.6p at 324.5p

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