Update shared on28 Sep 2025
Fair value Increased 1.82%Analysts have raised Centrica’s price target slightly to £1.93, citing its strong positioning among UK utilities, improved earnings momentum, and anticipated cost-cutting efforts, while overall fair value remains nearly unchanged.
Analyst Commentary
- Bullish analysts highlight Centrica as a top pick in UK utilities due to its strong relative positioning.
- Anticipated cost cutting plan in early 2026 could accelerate earnings growth.
- Upward revisions to price targets reflect improved earnings momentum expectations.
- Continued improvement in operational efficiency is seen as a catalyst for further upside.
- Major brokers maintain cautious optimism, with some retaining Neutral ratings despite modest price target increases.
What's in the News
- Centrica and X-Energy entered a Joint Development Agreement to deploy advanced modular nuclear reactors in the UK, with the first preferred site at Centrica's Hartlepool, aiming for a fleet of up to 6 GW.
- Centrica announced life extensions for its Heysham 1 and Hartlepool nuclear stations, now set to operate until March 2028, adding an estimated 3 TWh to generation volumes and enhancing energy security.
- Centrica acquired a 15% equity stake in the new 3.2 GW Sizewell C nuclear power station with £1.3 billion committed construction funding.
- Centrica terminated HSBC Continental Europe as Paying Agent for its Notes, appointing Citibank Europe plc as replacement, effective August 29, 2025.
- Centrica declared an interim dividend of 1.83 pence per share for H1 2025 and completed the repurchase of 13.63% of shares for £991.5 million.
Valuation Changes
Summary of Valuation Changes for Centrica
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £1.90 to £1.93.
- The Future P/E for Centrica remained effectively unchanged, moving only marginally from 15.78x to 16.07x.
- The Consensus Revenue Growth forecasts for Centrica remained effectively unchanged, moving only marginally from 1.2% per annum to 1.1% per annum.
Disclaimer
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