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Highlights

  • Berenberg has maintained its Buy recommendation on Centrica.

  • The analyst places Centrica’s target price at AUD 365 (GBP 190).

  • The outlook remains supported by stable earnings performance and ongoing nuclear energy initiatives.

Centrica plc (LSE:CNA), a leading player in the UK’s energy market, has received renewed confidence from Berenberg, with the analyst reaffirming a Buy rating on the company. 

Berenberg has set a target price of GBP 190 (AUD 365) per share, representing a notable premium to the company’s recent trading level of GBP 165.95 (AUD 319). This target implies further upside potential.

The target price of GBP 190 (AUD 365) represents a 12.29% upside compared with the current price.

Nuclear Energy Extensions 

Centrica’s commitment to enhancing the UK’s energy security remains a central theme in its long-term growth story. The company recently confirmed that two of its nuclear power stations, Heysham 1 and Hartlepool, will now remain operational until March 2028, extending their lifespans by one year. These stations play a critical role in providing low-carbon electricity to over four million homes annually, reducing reliance on fossil fuels while supporting the UK’s decarbonisation agenda.

In addition, Centrica has invested in the UK’s next major nuclear project, Sizewell C, by acquiring a 15% equity stake. This new 3.2 GW station, currently under construction, is designed to provide zero-carbon baseload power for at least 60 years once operational.

Interim Performance and Financial Standing

Centrica’s half-year results for the period ended 30 June 2025 showed an adjusted EBITDA of AUD 1.74 billion (£0.9 billion) compared with AUD 2.71 billion (£1.4 billion) in the prior year. While profitability was lower year-on-year, the company highlighted significant contributions from its retail segment, particularly British Gas Services & Solutions.

Net finance income stood at AUD 50 million (£26 million), supported by lower interest costs and proactive debt management. Meanwhile, the balance sheet remains positive, closing the half year with adjusted net cash of AUD 4.8 billion (£2.5 billion).

Centrica also returned approximately AUD 950 million (£0.5 billion) to shareholders in the first half of 2025 through dividends and share buybacks.

Outlook

Looking ahead, Centrica reaffirmed its 2025 guidance, with expectations that its retail energy supply and optimisation businesses will perform within their medium-term adjusted operating profit ranges. The group also anticipates continued improvement from British Gas Services & Solutions as it progresses towards its 2026 profit target.