Centrica Investment acceleration continues - remain OW

Research evidence excerpt

Centrica Investment acceleration continues - remain OW

C A Z E N O V E Europe Equity Research

15 May 2026

Centrica Overweight

CNA.L, CNA LN

Investment acceleration continues - remain OW Price (14 May 26):202p

▼Price Target (Dec-27):235p

Prior (Dec-27):245p

We view Centrica as well positioned to benefit from a higher, more volatile

commodity backdrop. While we acknowledge that consensus is yet to reflect a European Utilities & Clean Energy

weaker outlook for FY26 (we are ~12% below the Bloomberg consensus median), Pavan Mahbubani, CFA AC

our analysis suggests that the market under-appreciates the company’s earnings (44-20) 7134-3056

growth potential (EPS nearly doubling between 2026 and 2030). 2026 will be the pavan.mahbubani@jpmorgan.com

J.P. Morgan Securities plc

second year Centrica has invested >£1bn and we expect the company to find further

Javier Garridoopportunities for value-accretive investment. We lower our price target as we now

(34-91) 516-1557

estimate both lower costs and benefits from the company’s transformation javier.x.garrido@jpmorgan.com

programme - our refreshed 235p Dec-27 price target (previously 245p) implies J.P. Morgan Securities plc

16% upside potential and we remain Overweight. Samanvitha Theegela

(91-22) 6157-5846

• Estimate changes: We lower FY26 retail EBITDA incorporating the impact samanvitha.theegela@jpmchase.com

of warmer weather in 1Q26, incorporate the Severn Power acquisition, and J.P. Morgan India Private Limited

lower both the costs and benefits of the transformation programme announced Mukund Verma

in February. While we are 12% below consensus for FY26, we are 5%/1% (44-20) 7742-4181

above FY29/FY30 consensus. Furthermore, our calculations show that the mukund.verma@jpmorgan.com