Engie: Still more to go – Quality improving / catalysts building; reiterate OW / PT increased (again)

研报英文原文证据摘录

Engie: Still more to go – Quality improving / catalysts building; reiterate OW / PT increased (again)

an-expected UKPN 52 Week range EUR 29.54-17.00

closing, higher global energy prices and Brazilian Real strength. The 1Q26 results were an

important proof point, with EBIT excluding nuclear of €3,411m around 3–6.5% above

Bloomberg consensus and more than 10% ahead of our forecast. We see a strong 2026-27

catalyst path : 1H26 results on 31 July as the first major test of the full-year NRIgs trajectory, a

potential 2026 guidance upgrade, medium-term guidance refresh (at FY26 results), UKPN

integration and c.€4bn of related disposals, Belgian nuclear buyout talks, data-centre contract

wins against the 6GW gross pipeline , and manageable French political risk. Source: IDC

Link to Barclays Live for interactive charting

Valuation: still undervalued despite a stronger profile. Engie still trades at a meaningful

discount to European integrated utility peers despite a better earnings mix across regulated

European Utilities & Clean Energynetworks, renewables, batteries and energy management. On headline P/E, EV/EBITDA and

Peter Crampton

dividend yield metrics, the 2026-28E discount remains around 8–16%. We view this as too wide

+44 (0)20 3555 0125

given our 2030E P/E of ~11.2x, ~6% adjusted EPS growth p.a. from 2026 and management’s 7% peter.crampton2@barclays.com

EBIT excluding nuclear CAGR target over 2025–28. The ~5–6% 2026–30E dividend yield, more Barclays, UK

than 100bps above the SX6P, adds further support. We also see limited market credit for data-

Dominic Nash, PhD

+44 (0)20 3134 2364

Barclays Capital Inc. and/or one of its affiliates does and seeks to do business with companies dominic.nash@barclays.com

covered in its research reports.