Centrica PLC (LSE:CNA) has received an upgrade to its price from RBC which sees the British Gas owner emerging as a winner from the current chaos in the UK energy market.
While the storm clouds might be overhanging the gas market currently, eventually what emerges should be a better place for Centrica argues the broker.
“With a healthier outlook for UK retail operations and further balance sheet improvements, we increase our price target to 90p/sh and reiterate our Outperform rating.”
Noting the situation remains complicated with the political focus now on the potential £600 increase in consumer bills in April, RBC does not expect any political intervention will leave suppliers out of pocket and will more likely take the form of government support to defer bill increases.
“Once the dust settles, we believe CNA is likely to emerge stronger with less competition and an enhanced customer base.”
RBC new 90p price target compares to 75p previously and compares to 69.3p, up 0.4%. today.