Berenberg cuts E.ON to 'hold' as regulatory uncertainty weighs

E.ON SE

10/02/2026 12:41

** Berenberg downgrades electricity multinational E.ON EONGn.DE to "hold" from "buy", citing a lack of clarity over regulatory frameworks in Germany

** The brokerage highlights Germany's energy regulator is not expected to confirm debt and equity costs until 2026-2028, cost and efficiency factors until potentially 2028

** "Consequently, E.ON may need to wait to discover whether the regulatory full package will support its desire for internationally competitive remuneration that would justify the anticipated step-up in networks investment," it says

** Berenberg sees temporary EBITDA and net income downturns in 2026 on the back of rising network costs

** It lowers earning-per-share forecast for 2026 and 2027 by 1.6% and 0.1%, respectively

** The broker says the company is set to lead domestic scale-up of renewables and demand from data centres, pointing to its strong market share, financial headroom and significant existing infrastructure investment

 (Reporting by Danny Callaghan)

 ((danny.callaghan@thomsonreuters.com))