Metzler upgrades E.ON as grid bottlenecks boost outlook

E.ON SE

11/05/2026 11:28

** Metzler upgrades Germany's E.ON  to "buy" from "hold", saying an "increasingly urgent" need to ease grid bottlenecks could boost earnings at Europe's largest network operator

** "Grid expansion ultimately sets the pace for further electrification and is likely to continue growing steadily," the broker says, adding regulation could turn more favourable for network operators

** Metzler sees annual profit growth of 5% through 2030 as "realistic" even without regulatory improvements. Roughly three-quarters of E.ON's profits come from its regulated network business

** The broker says grid bottlenecks in Germany are particularly evident in adding renewable energy capacity

** In 2025, Germany – E.ON's single largest market – connected around 5 gigawatts (GW) of onshore wind capacity, while onshore projects awarded or ready for construction totalled 25 GW at year-end

** Lifts price target by around a third to 24 euros ($28.25) per share

** Out of 23 analysts covering E.ON, 13 rate the stock "strong buy" or "buy", ​nine rate "hold" and one rates "strong sell"​​ – LSEG data

($1 = 0.8495 euros)

 (Reporting by Danny Callaghan)

 ((danny.callaghan@thomsonreuters.com))