Morningstar raises valuation target for NZ's Contact Energy

Contact Energy

20/05/2026 20:46

** Morningstar says energy retailer Contact Energy CEN.NZ has a favourable outlook and expects EBITDA to rise to NZ$1.3 billion ($763.62 million) within five years, primarily upon completion of renewable energy and battery developments

** Investment research firm raises fair value estimate by 2% to NZ$9.20, says shares are "fairly valued"

** Says Contact's financial health is sound following recent equity raise, expects it to deliver its large development pipeline without tapping equity markets again

** Morningstar sees a relatively flat FY27 as rainfall normalises, but expects mid- to high single-digit annual EBITDA growth for the medium term on completion of developments and moderate retail price increases

** Shares up 7.9% so far this year

($1 = 1.7024 New Zealand dollars)

 (Reporting by Nikita Maria Jino in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))