- Centrica
- 17 September 2025 13:44:29
Source: Sharecast
The bank said Centrica’s shares aren’t even 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.
Elsewhere, Deutsche Bank downgraded Eurowag to ‘hold’ from ‘buy’ following a strong share price performance, but lifted the price target to 110p from 90p.
The bank said Eurowag's first-half results showed another resilient performance despite essentially flat economic growth in Europe in the same period.
"H1'25 net sales grew 15%, driven particularly by strong growth in toll net revenues as a result of CO2 charges in Germany and Austria as well as geographical expansion of its EETS solution," it noted.
Adjusted EBITDA was up 8%, while adjusted cash EBITDA was up 14%, DB said, adding that the group delivered an adjusted cash EBITDA margin of 30.4%, similar to the level of the previous year.
"Cash generation was good, with net debt down to €244m and ND/EBITDA of 2.0x down from 2.6x in H1'24 and 2.3x at the end of FY24," Deutsche said.