Update shared on13 Sep 2025
Fair value Increased 1.65%Cautious optimism among analysts, grounded in Centrica’s strong past sector outperformance and a balanced risk/reward outlook, has led to a marginal increase in the consensus price target from £1.87 to £1.90.
Analyst Commentary
- Bullish analysts see modest upside potential, reflected in minor price target increases.
- Some analysts cite Centrica’s significant sector outperformance since 2020 as a reason to temper future expectations.
- A balanced risk/reward profile is noted after strong historical gains, supporting neutral positioning.
- Adjustments reflect cautious optimism amid prevailing market conditions for the utility sector.
- Current ratings suggest limited catalysts for further significant share price appreciation in the near term.
What's in the News
- Centrica announced further life extensions for its UK nuclear power stations Heysham 1 and Hartlepool (in which it holds a 20% share), pushing their operational lives to March 2028, and projecting an additional 12 TWh of electricity generation between 2026 and 2030 from various assets; this follows Centrica's recent £1.3bn investment for a 15% stake in the Sizewell C nuclear project, supporting long-term UK energy security and decarbonisation (Key Developments).
- Centrica declared an interim dividend of 1.83p per share for H1 2025, up from 1.50p per share the previous year (Key Developments).
- Centrica completed the repurchase of 709.5 million shares (13.63% of shares outstanding) for £991.5m under the ongoing buyback program, including 252 million shares repurchased in H1 2025 (Key Developments).
- Centrica is changing its paying agent for certain notes, replacing HSBC Continental Europe with Citibank Europe effective August 29, 2025 (Key Developments).
- Former Centrica CEO Sam Laidlaw is among the candidates being considered for BP's next chairman, according to Sky News (Periodicals, Sky News).
Valuation Changes
Summary of Valuation Changes for Centrica
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £1.87 to £1.90.
- The Future P/E for Centrica has risen from 14.73x to 15.78x.
- The Consensus Revenue Growth forecasts for Centrica remained effectively unchanged, at 1.2% per annum.
Disclaimer
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