Bank of America Securities analyst Peter Bisztyga upgraded the rating on E.ON SE (0MPP – Research Report) to a Buy today, setting a price target of €15.50.
Peter Bisztyga has given his Buy rating due to a combination of factors that highlight E.ON SE’s potential for growth and favorable market positioning. The recent decision by Germany to lift its ‘debt brake’ and allocate €500 billion towards infrastructure over the next decade is seen as a transformative opportunity for E.ON. This policy shift is expected to enhance growth prospects across E.ON’s energy network, services, and retail divisions, while also increasing the likelihood of a positive outcome in the upcoming regulatory review.
Furthermore, E.ON is well-positioned to benefit from Germany’s planned infrastructure fund, which could accelerate growth in areas such as municipal grid upgrades, electric vehicle charging networks, and smart meter rollouts. The potential for increased capital expenditure without the need for additional equity further strengthens E.ON’s growth outlook. Additionally, the anticipated regulatory changes could significantly boost E.ON’s earnings per share growth, making its valuation attractive compared to its peers. These factors combined justify the upgrade to a Buy rating with a price objective of €15.50.
In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a €17.00 price target.