Jefferies cuts Centrica to “hold,” flags weak growth outlook through 2028

try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Asia stocks slide as US-Iran strikes batter risk appetite Oil prices surge after US-Israel strikes on Iran, trim early gains Gold prices jump 2% amid widening US-Israel conflict with Iran Middle East tensions rise as Iran promises retaliation (South Africa Philippines Nigeria) Jefferies cuts Centrica to “hold,” flags weak growth outlook through 2028 By Navamya Acharya Author Navamya Acharya Stock Markets Published 03/02/2026, 01:43 AM Jefferies cuts Centrica to “hold,” flags weak growth outlook through 2028 0 CNA 1.61% Investing.com -- Jefferies downgraded Centrica (LON:CNA) to “hold” from “buy” on Monday, citing limited visibility on growth beyond 2028 and near-term earnings pressure, even as it raised its price target by 5% to 210p from 200p, according to analysts at Jefferies. The brokerage cut its FY26 EBITDA and EPS estimates by 1% and 17% respectively following Centrica’s FY25 results, which came in line with consensus. Access faster breaking news and analyst reactions with InvestingPro - up to 50% off The sharp EPS reduction was driven by £100 million in higher net interest costs, now aligned to company guidance. Jefferies noted that consensus EPS had already fallen roughly 15% over the prior six months before the FY25 update. "We see a lack of near-term catalysts along with near-term negative earnings revisions as overhangs for the stock," Jefferies said in the note, adding that "better set-ups" exist elsewhere in the European utilities sector through grids and power demand exposure. Centrica’s stock has risen more than 10% year-to-date and trades at 10 times Jefferies’ 2030 EPS estimate of 20p per share. The brokerage’s price target implies a 2030 price-to-earnings multiple of 10.5 times and a dividend yield of 4.8%. Jefferies revised its FY26 group EBITDA estimate to £1.44 billion from £1.46 billion and cut FY27 EBITDA to £1.47 billion from £1.50 billion. For EPS, the brokerage now forecasts 11.9p f...