Berenberg Trims Centrica Price Target After H1 Report; Buy Rating Kept

05:58 AM EDT, 07/28/2026 (MT Newswires) -- Berenberg lowered its price target for Centrica (CNA.L) to 2 pounds sterling from 2.30 pounds, with an unchanged buy rating, following a model update after the British utility's first-half results July 23. "The focus of the results call was on the lower 2027 outlook for Centrica Energy and the increase in bad debts in the UK residential business; the shares ended the day sharply lower. There is clearly work to do to improve performance in some areas of the business, and clarity from the government on the future of the Rough gas storage asset would also be positive, in our view," according to a Monday note. Centrica issued a 2027 EBITDA outlook for Centrica Energy, guiding for levels in line with those delivered in 2025 and its 250 million-pound guidance for 2026, which Berenberg said is 18% below its previous estimate. However, the research firm said it remains "positive" on the company's long-term strategy of increasing exposure to contracted and/or regulated earnings. As such, Berenberg lowered its EBIT and EPS estimates from 2026 to 2028. Meanwhile, EBITDA estimates were revised across the three-year period, with the 2026 and 2027 forecasts cut, while that for 2028 was lifted.