12:08 PM EDT, 08/26/2026 (MT Newswires) -- Berenberg lifted E.ON's (EOAN.F) rating and price target, citing expectations that the German energy company would further accelerate its investment in power networks amid higher demand for new connections. "We believe that the market overreacted to the recent draft return on equity (ROE) for gas networks published by Germany's energy regulator, BNetzA. As such, the fall in E.ON's shares creates an opening to invest in an attractive regulated utility that has the opportunity and financial firepower to sustain scaled-up growth and value-accretive investment in its German power networks," analysts said in a note published Wednesday. "While BNetzA's draft gas return looks below par, we see multiple reasons why it remains reasonable to expect an overall supportive remuneration package for the next regulatory period (starting in 2028 for gas and 2029 for power)." The hold recommendation on the stock was upgraded to buy and the price target was increased to 21 euros from 19.30 euros. The research firm also reduced its EPS estimates for 2026 and 2027 by 2.5% and 0.4%, respectively, while that for 2028 was nudged 0.4% higher. EBITDA and EBIT forecasts for all three years were upwardly revised. Looking further ahead, EPS projections for the 2029 to 2035 period were raised by 3% on average.

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