Morgan Stanley sees upside to European utilities

SOLARIA ENERGIA Y MEDIO AMBIENTE SA

03/12/2025 09:50

Corrects Solaria's rating in table to show it moved from 'underweight' to 'equal-weight', not the other way around

** Morgan Stanley takes a differentiated view on European utilities in its note "Powering AI Comes to Europe"

** The brokerage raises its target price for 11 European utility companies and upgrades E.ON EONGn.DE, Drax DRX.L, Veolia VIE.PA and Solaria SLRS.MC

** The broker says Drax benefits from higher and more volatile power prices and that E.ON could benefit from regulation changes, while pointing to Solaria's diversification strategy into batteries

** Morgan Stanley is more pessimistic for the prospect of Italian power companies, citing an outdated strategy for Enel ENEI.MI and a less defined catalyst pipeline for Italgas IG.MI

COMPANY
RATING
OLD RATING
PT
OLD PT
VeoliaVIE.PA
Overweight
Equal-weight
EUR 33.0
EUR 32.0
SolariaSLRS.MC
Equal-weight
Underweight
EUR 15.0
EUR 13.0
SSESSE.L
na.
na.
2,500p
2,400p
Severn TrentSVT.L
na.
na.
3,350p
3,300p
RWERWEG.DE
na.
na.
EUR 55.0
EUR 52.0
OrstedORSTED.CO
na.
na.
DKr 145.0
DKr 135.0
ItalgasIG.MI
Equal-weight
Overweight
na.
na.
E.ONEONGn.DE
Overweight
Equal-weight
na.
na.
ENELENEI.MI
Underweight
Equal-weight
EUR 8.60
EUR 8.30
Endesa SA ELE.MC
na.
na.
EUR 29.0
EUR 27.0
Drax Group PlcDRX.L
Overweight
Equal-weight
900p
710p

 (Reporting by Simon Ferdinand Eibach)

 ((Simonferdinand.eibach@thomsonreuters.com))