EON share: More growth expected!

The energy supplier EON was able to score points last year with an operating profit of a good 9 billion euros, thus exceeding market expectations, although the result was three percent below the previous year's figure. For the current year, the DAX company expects an adjusted operating profit of 9.6 to 9.8 billion euros, which would even exceed the 2023 level. The positive earnings dynamic was also reflected in the share price, which rose by almost four percent at times. The dividend is expected to rise by 2 cents to 0.55 euros per share. Analysts rate the company's prospects predominantly positively - the US analysis house Bernstein Research confirmed its "outperform" rating with a price target of 15 euros. The medium-term profit expectations have also been revised upwards: By 2028, adjusted operating profit is expected to rise to over 11.3 billion euros, which exceeds previous analyst forecasts of 11.1 billion euros.

Billions of investments planned for network expansion

EON is increasingly focusing on expanding its network infrastructure and is planning investments of 43 billion euros for the period from 2024 to 2028 - one billion more than previously planned. In the current year alone, Germany's largest electricity supplier and network operator plans to invest 8.6 billion euros, up from 7.5 billion euros last year. The focus is on digitization and smart grid technologies to improve efficiency and network stability. However, investment planning beyond 2028 remains open, as the future regulatory interest rate for the electricity business is still unclear. EON CEO Birnbaum emphasized that the company is prepared to make further investments, "but never at any price." RBC expert Alexander Wheeler referred to the balance sheet leeway of 5 to 10 billion euros identified by EON for 2028, which, however, requires the right regulatory framework in order to be used.

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