Morgan Stanley upgrades Centrica, says it's 'top pick' UK utility.
Centrica rallied on Wednesday as Morgan Stanley upgraded the British Gas owner to ‘overweight’ from ‘equalweight’ and said it was now its 'top pick' UK utility.
Centrica
17 September 2025 09:26:30
Source: Sharecast
The bank said Centrica’s shares aren’t fully valuing its existing business, let alone potential upside from deals including Sizewell C and the Grain LNG terminal.
It said the next stage of the equity story is coming together as management demonstrates the ability to deploy capital to value-accretive projects.
Morgan Stanley noted that Centrica has now committed about 70% of its 2024-2028 capex plan. It said these known investments can drive 2029 EBITDA to £1.6bn, which is 8% above consensus expectations.
The bank lifted its price target on Centrica to 210p from 175p.
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