HSBC upgrades E.ON to Buy on retail margins view

HSBC upgraded E.ON to Buy from Hold with a price target of EUR 13, up from EUR 12.60. The firm’s view is turning more positive on retail margins, investments and the German regulatory debate. It is becoming “increasingly comfortable” that the German regulatory review process for networks will reach an outcome that will unlock the investment step up that German distribution networks need to achieve German energy transition targets. This drives higher and growing EBITDA expectations in networks from 2027 onwards, the analyst tells investors in a research note.