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Drax Group plc ( (GB:DRX) ) has issued an update.
Drax Group reported a solid start to 2026, with operational performance supporting expectations for full-year adjusted EBITDA in line with market consensus and underpinned by strong contracted power sales and index-linked Capacity Market agreements extending earnings visibility to 2043. The company is expanding its UK flexible generation portfolio through progress on new open-cycle gas turbine projects, a growing battery storage pipeline supported by the Flexitricity acquisition, and upgrades at Cruachan pumped storage, while returning capital via a £450m share buyback and maintaining its dividend, signalling confidence in cash generation and long-term positioning in the transition to a lower-carbon, more secure UK power system.
The most recent analyst rating on (GB:DRX) stock is a Sell with a £720.00 price target. To see the full list of analyst forecasts on Drax Group plc stock, see the GB:DRX Stock Forecast page.
Spark’s Take on DRX Stock
According to Spark, TipRanks’ AI Analyst, DRX is a Neutral.
The score is driven primarily by mid-range financial performance (strong cash generation and manageable leverage but weaker recent profitability) and supportive technicals (trading above key moving averages with neutral momentum). Valuation metrics are very favorable on the provided P/E and dividend yield, while the earnings call adds a positive tilt from reiterated multi-year free cash flow and shareholder returns, tempered by impairments and near-term earnings pressure under the new CfD regime.
To see Spark’s full report on DRX stock, click here.
More about Drax Group plc
Drax Group plc is a UK-based energy company focused on renewable and flexible power generation, including biomass, pumped storage, hydro, open-cycle gas turbines and battery energy storage. The group also produces biomass pellets, primarily in North America, and plays a key role in UK energy security by supplying a significant share of the country’s renewable electricity.
Average Trading Volume: 916,209
Technical Sentiment Signal: Buy
Current Market Cap: £2.91B
For detailed information about DRX stock, go to TipRanks’ Stock Analysis page.