Analysts at the bank upped their target price to 1,510p from 1,480p as they said the win for Boris Johnson removed the 0.5% risk premium factored in the previous valuation.
Another upside for the big six power supplier is the sale of its retail arm to Ovo Group for £500mln, approved by the authorities earlier this week.
With around 90% of its 2020 operating profit coming from either the regulated networks business or renewables business, for a 2021 dividend yield of 6.2% which is “very attractive”, according to HSBC.
“We think SSE combines attractive yield and valuation metrics with improved earnings growth visibility due to its success in the recently concluded UK contracts for difference auction and its retail asset disposal,” analysts said in a note.
Shares rose 8% to 1,410 on Friday afternoon.