Berenberg sees 'era of opportunities' for European utilities to continue

Endesa SA

21/01/2026 08:40

** Berenberg expects "this unprecedented era of opportunity for utilities to continue", as it names Britain's SSE SSE.L as its new top pick and cuts France's Engie ENGIE.PA to "hold" from "buy"

** The broker identifies four key themes going into the new year: rising carbon prices, flexible energy generation and storage, vast demand as electrification continues and data centres guzzle power, and acceleration in investment across energy networks

** "We see ongoing value-creation opportunities across networks, renewables and increasingly important flexible generation... bolstered by the prospect of a new era of growing power demand," it says

** It explains the downgrade on Engie by the lack of obvious near-term catalysts that would alter a forecast of slower growth compared to peers

** For SSE, the broker cites one of the highest growth potentials alongside a low valuation

** It also flags RWE RWEG.DE among preferred stocks on similar grounds

COMPANY
RATING
OLD RATING
PT
OLD PT
EDP EDP.LS
BUY
no change
EUR 4.70
EUR 4.10
EDPR EDPR.LS
BUY
no change
EUR 15
EUR 13.20
Endesa ELE.MC
HOLD
no change
EUR 31
EUR 20
Enel ENEI.MI
HOLD
no change
EUR 9.70
EUR 7.60
ENGIE ENGIE.PA
BUY
HOLD
EUR 24.50
EUR 17.50
Fortum FORTUM.HE
HOLD
no change
EUR 17.70
EUR 14.50
Iberdrola IBE.MC
HOLD
no change
EUR 19
EUR 17.50
RWE RWEG.DE
BUY
no change
EUR 58
EUR 42
SSE SSE.L
BUY
no change
2,800p
2,200p
Verbund VERB.VI
HOLD
no change
EUR 65
EUR 70

(Reporting by Jakob Van Calster)

((jakob.vancalster@thomsonreuters.com))