UBS Global Research upgraded E.ON SE to Buy from Neutral on Monday. The bank raised its 12-month price target for the German energy company to €20.00 from €19.50. Analysts identified recent stock underperformance as an attractive entry point for investors.
UBS suggests the market currently overlooks growth potential in E.ON's core power infrastructure. Financial markets have focused on draft gas regulatory proposals rather than electricity distribution networks.
The bank forecasts 7% annual compound growth in adjusted EBITDA and EPS. This growth projection covers the period between 2025 and 2030. Necessary grid expansion in Germany will drive these financial results.