JPM sees 'attractive defensive option' in utilities stocks; ups Engie

Fortum Oyj

01/04/2026 07:53

** J.P. Morgan upgrades French utility Engie ENGIE.PA to "overweight" from "neutral", saying higher gas and power prices create a "halo effect" for the sector

** The broker notes a price surge driven by the conflict in the Middle East eliminates previous LNG oversupply risks and leaves 2028 forward prices 28% above pre-war levels

** JPM adds the sector is an attractive defensive option as "the disruption and uncertainty created so far look unlikely to fully disappear in the foreseeable future"

**  JPM favours above-average growth stocks, raising its PT for Germany's RWE RWEG.DE by 14% to EUR 65 and for British energy firm SSE SSE.L by 13% to GBp 2,925

** The brokerage cites other lower multiple stocks like Britain's Centrica CNA.L as attractive, and would avoid richly valued peers such as Finland's Fortum FORTUM.HE that are "pricing in generous long-term expectations"

(Reporting by Zakarya Meliani)

((zakarya.meliani@thomsonreuters.com))