ENAKF - E.ON: Accelerated Growth Means Higher Potential Value Per Share (Rating Upgrade)

2024-03-26 13:08:32 ET

Summary

• There was a strong message related to CAPEX growth.
• E.ON's financial guidance was significantly above Wall Street expectations.
• We are constructive on the European network sector. Despite a supportive outlook, E.ON trades at a discount.

Today, we are back to comment on E.ON ( EONGY ) following the Q4 results. As a reminder, E.ON is a Germany-based energy player with core operating activities divided into three segments: Energy Networks, Energy Infrastructure Solutions, and Energy Retail (Fig 1). Since our last update, E.ON Is On Track To Achieve Its 2027 Objectives , the company decided to:

1. Accelerate the energy transition investment pace with additional billions of investments;
2. Successfully issued €1.8 billion of bonds and started pre-funding for 2025;
3. Reshape the Board for the next growth phase.

For further details see: