E.ON Stock: Multi-Year High Following Upgrade

Last Updated: 11. Dezember 2023By

For the E.ON stock, it has been going up steeply in recent weeks. Since the beginning of October, the paper has gained around 18 percent and thus started a real autumn and year-end rally. Now the title has climbed to a multi-year high and was quoted at around 12.50 euros (as of December 11, around 10 a.m.).

In the long term, the E.ON stock offers investors potential due to the future prospects. Now a prominent analyst voice has followed with UBS and upgraded the E.ON paper. The decent dividend yield of currently around 4 percent is also an argument for medium and long-term oriented investors.

It’s going well with E.ON The figures from the current financial year can convince: The adjusted EBITDA rose after 9 months by 27 percent to just under 7.8 billion euros, the adjusted group profit increased by 38 percent to just under 2.9 billion euros. The company also holds to the annual goals for 2023.

As part of the very decent figures and prospects, UBS has now upgraded the E.ON stock from „hold“ to „buy“ and raised the target price from 12 to 14 euros. Even in the other analyses updated in November, most experts see purchase prices at E.ON – although the price potential is not particularly high due to the strong development in recent weeks.

E.ON stock: Good long-term prospects for E.ON For the current 4th quarter, the energy provider is expecting a weaker result than recently. That was almost the only bad news, much speaks – especially in the long term – for the E.ON stock. On the one hand, the core areas of E.ON (energy transition and network infrastructure) are growth drivers for the future. With gigantic investments, the Essen-based company is currently setting the course for the coming years.

On the other hand, the paper is not overvalued despite the strong course development of the last months. Although the E.ON stock has gained more than 30 percent since the beginning of the year, there is still more potential here. After all, the returns and growth can be seen. And not least, the dividend also convinces.