(Sharecast News) - Jefferies downgraded British Gas owner Centrica on Monday to 'hold' from 'buy' as it pointed to a more balanced risk-reward on the stock at current trading.
The broker noted that Centrica shares are up more than 10% year-to-date and trading at 10x Jefferies' estimated 2030 price-to-earnings.
"In our view, the bull case for Centrica requires more visibility on post-2028 growth drivers," it said.
"We see a lack of near-term catalysts along with near-term negative earnings revisions as overhangs for the stock, and we see better set-ups elsewhere in the Euro Utils sector through grids/power demand exposure.
"With a more balanced risk-reward on the stock at current trading, we downgrade to hold."
Jefferies lifted its price target on the stock to 210p from 200p.
At 1040 GMT, Centrica shares were down 1.6% at 196.05p in a sharply lower London market.
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