Morgan Stanley sees upside to European utilities
03/12/2025 09:50
Corrects Solaria's rating in table to show it moved from 'underweight' to 'equal-weight', not the other way around ** Morgan Stanley takes a differentiated view on European utilities in its note "Powering AI Comes to Europe" ** The brokerage raises its target price for 11 European utility companies and upgrades E.ON EONGn.DE, Drax DRX.L, Veolia VIE.PA and Solaria SLRS.MC ** The broker says Drax benefits from higher and more volatile power prices and that E.ON could benefit from regulation changes, while pointing to Solaria's diversification strategy into batteries ** Morgan Stanley is more pessimistic for the prospect of Italian power companies, citing an outdated strategy for Enel ENEI.MI and a less defined catalyst pipeline for Italgas IG.MI
| COMPANY | RATING | OLD RATING | PT | OLD PT |
| VeoliaVIE.PA | Overweight | Equal-weight | EUR 33.0 | EUR 32.0 |
| SolariaSLRS.MC | Equal-weight | Underweight | EUR 15.0 | EUR 13.0 |
| SSESSE.L | na. | na. | 2,500p | 2,400p |
| Severn TrentSVT.L | na. | na. | 3,350p | 3,300p |
| RWERWEG.DE | na. | na. | EUR 55.0 | EUR 52.0 |
| OrstedORSTED.CO | na. | na. | DKr 145.0 | DKr 135.0 |
| ItalgasIG.MI | Equal-weight | Overweight | na. | na. |
| E.ONEONGn.DE | Overweight | Equal-weight | na. | na. |
| ENELENEI.MI | Underweight | Equal-weight | EUR 8.60 | EUR 8.30 |
| Endesa SA ELE.MC | na. | na. | EUR 29.0 | EUR 27.0 |
| Drax Group PlcDRX.L | Overweight | Equal-weight | 900p | 710p |
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