Morgan Stanley cuts E.On to 'equal-weight' from 'overweight', sees better risk/reward elsewhere

E.ON SE

22/07/2025 11:35

** Morgan Stanley cuts German energy company E.On to "equal-weight" from "overweight", EONGn.DE as it sees better risk/reward elsewhere after the shares' recent rally

** E.On has risen 45.3% YTD and although there is upside to the shares, there is less now compared to its peers as its valuation improved, the broker says

** It still sees it as a good portfolio addition, as "macro

concerns may lead E.ON to continue outperforming," it says

** However, potential growth of E.On's business is increasingly known and near-term EPS upgrades are unlikely, MS adds

** Out of 22 analysts covering the company, 13 rate it "strong buy" or "buy" and 9 rate it "hold" - LSEG data

 (Reporting by Isabel Demetz)

 ((Isabel.demetz@thomsonreuters.com))