Jefferies prefers German and Spanish utilities

Elia SA

03/08/2026 08:13

** Jefferies says for the second half of 2026, it prefers utility companies in Germany and Spain over their European peers due to the countries' macro and political stability
** The brokerage upgrades E.ON EONGn.DE to "buy" from "hold", citing meaningful earnings upside through higher investments from Germany's network development plans as well as potential for positive regulatory developments in Germany
** At the same time, the broker downgrades SVT SVT.L due to political and affordability risks in the UK water sector heightening uncertainties 
** Furthermore, the broker reiterates "buy" for the Belgian-based electric utility company Elia ELI.BR , the fastest growing utility firm in Europe
** Shares of E.On, SVT and Elia are up 16%, 8.2% and 13.6%, respectively


COMPANY
RATING
OLD RATING
PT
OLD PT
E.ON
Buy
Hold
€ 22.7
€ 17.46
Severn Trent
Hold
Buy
GBP 32.2
GBP 32.3
National Grid
Hold
Hold
GBP 13.0
GBP 14.13
Terna
Hold
Hold
€10.9
€ 9.82
Elia
Buy
Buy
€152.0
€ 155.1
Redeia
Buy
Buy
€17.4
€ 16.57
Pennon
Hold
Hold
GBP 5
GBP 5.88
United Utilities
Hold
Hold
GBP 13.5
GBP 13.24


 (Reporting by Simon Ferdinand Eibach)