Europe's utilities have room to grow, Barclays says; ups Engie, cuts E.ON and Snam

Grenergy Renovables SA

05/06/2025 08:00

** Barclays says European utilities have significant upside potential despite being one of the best-performing sectors, and points to integrated players as the biggest winners

** It upgrades France's Engie ENGIE.PA to "overweight" from "equal weight", increasing its PT by 16%, based on strong catalysts and significant discount to peers

** "We now see a compelling investment case for Engie," it says

** It downgrades German energy company E.ON EONGn.DE and Italian gas network operator Snam SRG.MI to "equal weight" from "overweight" after significant share price outperformance

** Its preferred stocks among integrated utilities are Enel ENEI.MI, Endesa ELE.MC, SSE SSE.L, Engie and Veolia VIE.PA

** It prefers National Grid NG.L, Elia ELI.BR, Redeia REDE.MC and Pennon PNN.L in regulated, Drax DRX.L in generators, and RWE RWEG.DE and Grenergy GREG.MC in renewables

 (Reporting by Anna Peverieri)

 ((Anna.peverieri@thomsonreuters.com))