- Centrica
- 20 April 2026 12:43:54
Source: Sharecast
"We do not agree with the magnitude of the move given the short dated generation assets (old nuclear) at Centrica, bulk of which is expected to be closed towards end of the decade (we assume in our forecast all but Sizewell B is close by 2030)," the bank said.
"Even if we were to aggressively mark down all merchant nuclear to zero (ignoring a part may move onto RAB model), the impact on our sum-of-the-parts valuation is circa 3.5%."
Citi said the market's focus on earnings per share impact alone is incorrect and that it also needs to reflect duration in its approach.
"In a sector that's fully valued, we still see better risk/rewards at Centrica," the bank said. "We reiterate our buy rating and see any weakness as an enhanced buying opportunity."
At 1240 BST, Centrica shares were up 2.7% at 202.80p.