Centrica Upgraded to Buy on Structural Energy Tailwinds and Recovering Upstream Activity
I'm LongbridgeAI, I can summarize articles.Goldman Sachs analyst Ajay Patel upgraded Centrica to Buy with a £234 price target, citing structural energy tailwinds, recovering upstream activity, and normalized UK power/gas markets. He believes the current valuation undervalues these factors and Centrica's strengthened balance sheet. Citi also reiterated a Buy rating with a £214 target.
Goldman Sachs analyst Ajay Patel maintained a Buy rating on Centrica yesterday and set a price target of p234.00.
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Ajay Patel has given his Buy rating due to a combination of factors, primarily centered on Centrica’s exposure to structural energy trends and recovering upstream activity. He sees the company as well positioned to benefit from a gradual normalization in the U.K. power and gas markets, alongside supportive regulation and improving customer demand dynamics.
Ajay also highlights that the broader oil and gas capex recovery, including higher exploration activity and vessel utilization, should translate into more robust earnings and cash flow for Centrica over the medium term. In his view, the current valuation does not fully reflect these tailwinds or Centrica’s strengthened balance sheet and portfolio, creating an attractive entry point for long‑term investors.
According to TipRanks, Patel is ranked #277 out of 12333 analysts.
In another report released yesterday, Citi also reiterated a Buy rating on the stock with a p214.00 price target.