E.ON SE advanced 1.5% on Tuesday, lifting its share price to €17.898 after Berenberg upgraded the stock to Buy from Hold and raised its target to €21 from €19.30.
The rally followed a market overreaction to Germany’s federal network regulator BNetzA’s draft return-on-equity proposal for gas networks, according to Berenberg. The broker argued that the proposed rates were unlikely to remain persistently below par, noting that future power network drafts were likely to reflect a higher average bond yield environment.
E.ON’s stock opened at €17.77 and reached an intraday high of €17.94. The move occurred as Germany’s DAX index traded around 26,322 points.
Berenberg set a modeled return target of 6.5% for E.ON’s blended allowed return across its power and gas network businesses. Approximately 65% of the company’s regulated asset base is concentrated in Germany, where the upcoming fifth regulatory period will cover gas networks from 2028 and power networks from 2029.
Germany’s Q2 2026 GDP growth came in at 0.3% quarter-on-quarter, exceeding analyst expectations of 0.2%.
