Centrica’s stock outlook remains in the spotlight as analysts revise their perspectives on the company’s future. The fair value estimate of £1.96 is unchanged. However, slight adjustments in revenue growth projections suggest continued optimism about Centrica’s expansion prospects. Stay tuned to discover how you can keep updated as the narrative around Centrica’s valuation continues to evolve.
Analyst sentiment toward Centrica has been mixed in recent months, with both bullish and bearish perspectives emerging as coverage is updated. The shifting tone reflects ongoing debate about Centrica’s valuation, future growth potential, and execution capabilities.
🐂 Bullish Takeaways
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Barclays upgraded Centrica to Overweight from Equal Weight and raised its price target to 210 GBp, up from 180 GBp. The firm sees further upside for European utilities and highlighted optimism about renewables, particularly in the improving onshore wind and solar outlook. Barclays currently favors the UK market and called out Centrica as a beneficiary.
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Morgan Stanley also upgraded Centrica to Overweight from Equal Weight and increased its price target to 210 GBp from 175 GBp. Morgan Stanley named Centrica as its top pick among UK utilities, citing the potential for a forthcoming cost cutting plan in early 2026 that could enhance earnings momentum.
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Across the upgrades, analysts noted Centrica’s execution and cost control as potential drivers of improved financial performance, along with solid momentum in renewables.
🐻 Bearish Takeaways
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Citi took a more cautious stance by downgrading Centrica to Neutral from Buy with a price target of 185 GBp. This reflects increased concern regarding valuation, with Citi signaling that much of the upside may already be reflected in the current share price.
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JPMorgan maintained a Neutral rating while raising its price target slightly to 179 GBp from 177 GBp. This signals that while there is some confidence in Centrica’s positioning, near-term gains may be modest and potential risks remain.
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The more cautious analysts continue to flag valuation and the amount of upside already priced into Centrica’s shares as reservations for new buyers.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!
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Centrica and X-Energy, LLC have entered a Joint Development Agreement to bring Xe-100 Advanced Modular Reactors to the UK. The Hartlepool site is targeted as the first of a planned fleet that could deliver up to 6 gigawatts of capacity.
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The company has announced life extensions for the Heysham 1 and Hartlepool nuclear power stations. Operations are now set to continue until March 2028, supporting UK energy security.
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Life extensions for Centrica’s UK nuclear plants are projected to add approximately 12 TWh in generation volumes from 2026 to 2030, bolstering clean energy supply for the country.
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Centrica has acquired a 15% equity stake in Sizewell C, a forthcoming zero-carbon power station that is expected to contribute to the UK’s energy mix for at least 60 years.
