AlphaValue/Baader Europe Lifts EPS Forecasts for Engie on 'Stronger' Operating Momentum

MT Newswires · 3d ago
12:49 AM EST, 11/06/2026 (MT Newswires) -- AlphaValue/Baader Europe raised its EPS estimates for Engie (ENGI.PA) to account for the French utility's "stronger" operating momentum in its nine-month earnings report. "In our view, B2B and Energy Management are tracking ahead of the EUR1.7bn combined target, and we now model EUR1.8bn. The performance plan has already delivered EUR406m after nine months, and commissioning in Renewables & BESS and LEI remains sustained. From 2027, higher French nuclear and hydro forwards also feed through the rolling three-year hedging policy," the research firm said Thursday. Analysts added that rising funding costs partially dilute these operational gains and are expected to create a larger drag in full-year 2027. "The average cost of gross debt has already risen to 4.2% from 4.0% at end-2025. Some EUR3-4bn of bonds maturing each year will reprice higher, and coupons on the UKPN hybrids add a further drag," the note said. Within this context, AlphaValue/Baader Europe upgraded its 2026 and 2027 EPS projections to 2.15 euros and 2.18 euros, respectively, from 2.01 euros and 2.13 euros. The research firm also reiterated its buy rating on the stock and increased the price target to 36.2 euros from 35.1 euros.