JPM ups Naturgy on earnings upside and M&A potential

CVC Capital Partners

14/04/2026 07:09

** JP Morgan upgrades Spanish utility Naturgy NTGY.MC to "overweight" from "neutral", seeing earnings upside in power generation and energy management alongside M&A potential

** It sees upside risk to earnings from a new commodity price environment, positive gas regulation surprises and a Spanish generation tax suspension

** Private equity shareholders losing a blocking minority board position could prompt CVC CVC.AS to sell its 13.8% stake, while Alba should retain its 5% holding, allowing for greater M&A optionality, it adds

** JPM estimates Naturgy has 7 billion euros ($8.2 billion) in acquisition capacity leaving a debt buffer to preserve its BBB credit ratings alongside dividend policy

** It anticipates a medium-term earnings growth profile as it expects "some deals to materialise sooner rather than later" during the next eighteen months

** Out of 19 analysts covering Naturgy, three rate it "strong buy"/"buy,"​ 13 "hold" and three "strong sell"/"sell" - LSEG data

($1 = 0.8500 euros)

(Reporting by Marta Serafinko in Gdansk)

((marta.serafinko@thomsonreuters.com; +48 58 769 66 00;))