UBS upgrades E.ON to 'buy' on Germany's grid growth

E.ON SE

07/09/2026 10:57

** UBS upgrades power provider E.ON EONGn.DE to "buy" from "neutral", citing the utility's favourable exposure to Germany's electricity grid development
** "The market is focused on the proposed gas WACC (weighted average cost of capital), but electricity networks increasingly drive E.ON’s growth in Germany," the broker says
** UBS expects "increasing and long-term growth" in electricity grids driven by new renewable connections, infrastructure improvement and digitalisation
** The broker estimates power will make up 93% of E.ON's German regulated asset base by the end of the decade with higher-than-anticipated German network capex by 2029
** Forecasts around 7% compound annual EBITDA and EPS growth between 2025 and 2030
** Stock up 1.7%
($1 = 0.8598 euros)

 (Reporting by Danny Callaghan)
 ((danny.callaghan@thomsonreuters.com))