RBC Updates Engie Model Post-H1 Earnings; Outperform Rating Kept

06:32 AM EDT, 08/06/2026 (MT Newswires) -- RBC Capital Markets revised its model for Engie (ENGI.PA), adjusting its price target and earnings forecasts after the French energy company published its first-half results. "We update estimates following H1 results, where net income (NRIgs) guidance was raised 6% at the mid-point. While the quality of the beat was mixed, with some one-offs such as the early [UK Power Networks] consolidation, we continue to see strong momentum across the group, with positive upcoming catalysts from the disposal programme and potential nuclear divestment. We reiterate Outperform, with an upgraded [EUR31 price target from EUR30]," according to a Wednesday note. After the company upgraded its full-year outlook, the research firm no longer expects an "earnings trough" in 2026, highlighting robust efficiency momentum. With net recurring income group share projected at between 4.9 billion euros and 5.5 billion euros, analysts noted that the lower end of the guidance already surpasses the full-year 2025 level. "While the upgrade was supported by the early consolidation of UKPN (+ EUR180m EBIT), the cost efficiency performance is trending well ahead of guidance, having already achieved the mid-point of its full-year target, and it is material in the context of the group - accounting for ~50% of RBCe EBIT growth through FY28E," the note said. RBC revised its forecasts to account for the newest outlook, higher efficiency gain expectations, and early consolidation of UKPN, among others. As such, the research firm increased its 2026 to 2028 projections, including for adjusted EBITDA, adjusted EBIT, adjusted basic EPS and dividend per share.