Centrica, the Utilities sector company, was revisited by a Wall Street analyst today. Analyst Ahmed Farman from Jefferies downgraded the rating on the stock to a Hold and gave it a p210.00 price target.
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Ahmed Farman has given his Hold rating due to a combination of factors tied to Centrica’s current valuation and earnings outlook. The shares have already risen meaningfully and now trade on a multiple that, in his view, fairly reflects the near-term prospects, especially given ongoing negative earnings momentum and cuts to forward EPS estimates driven in part by higher expected interest costs.
At the same time, Farman sees insufficient clarity around Centrica’s growth engines beyond 2028, with a sizable portion of planned capital spending still not linked to clearly defined value-creating projects. He also notes a scarcity of near-term catalysts and a more compelling risk‑reward profile available in other European utilities, leading him to view the stock’s current risk‑return balance as neutral rather than attractive enough to warrant a Buy recommendation.
In another report released on February 21, TipRanks – OpenAI also reiterated a Hold rating on the stock with a p197.00 price target.