Centrica Shares (CNA) Hit Fresh High as Price Target Raised

Centrica shares (LON: CNA) reached a new peak of 196.34p today before settling at 196.10p, marking a 2.19% gain and extending the British Gas owner's year-to-date advance to 12.6%.

The rally received fresh impetus from RBC Capital Markets, which raised its price target on the stock from 200p to 215p while maintaining an Outperform rating, signalling continued confidence in the energy supplier's strategic trajectory.

The upward revision from RBC follows a string of positive analyst actions that have underpinned Centrica's share price resurgence over recent months. Morgan Stanley upgraded the stock to Overweight in September 2025, naming it a top pick and highlighting the company's investments in the Sizewell C nuclear project and the Grain LNG terminal as key drivers of future earnings growth. Barclays followed suit in October 2025, elevating its rating to Overweight and increasing its price target from 180p to 210p, citing heightened conviction in the company's upside potential.

Central to the bullish sentiment has been Centrica's strategic pivot toward large-scale energy infrastructure. In July 2025, the company acquired a 15% stake in the Sizewell C nuclear power station, with an option to purchase an additional 2.4% from the UK Government within 24 months. The investment is expected to generate a real allowed return on equity of 10.8% during the construction and initial operations phase, providing a stable, long-term revenue stream as the UK seeks to bolster its nuclear capacity.

Complementing this growth-oriented strategy has been a disciplined approach to portfolio optimization. In January 2026, Centrica announced the sale of Spirit Energy's remaining 15% interest in the Cygnus gas field and other assets to Serica Energy for approximately £98 million. The divestiture aligns with the company's broader ambition to streamline operations and redirect capital toward greener energy projects, reinforcing its position in the UK's energy transition.

Despite a challenging operational environment that saw adjusted EBITDA decline to £2.3 billion in 2024 from £3.5 billion in 2023, Centrica has maintained a robust commitment to shareholder returns. The company raised its full-year dividend by 13% to 4.5p per share and announced an additional £500 million share buyback program, extending the total repurchase scheme to £2 billion by the end of 2025. These measures have been well-received by markets, demonstrating management's confidence in cash generation capacity even amid earnings headwinds.

Insider activity has also reinforced positive sentiment. In November 2024, CEO Chris O'Shea and CFO Russell O'Brien acquired shares under the company's Share Incentive Plan, a move interpreted as a vote of confidence in Centrica's long-term prospects.

Centrica Price Targets

With RBC's latest price target implying further upside of approximately 9.6% from current levels, and a suite of strategic investments beginning to take shape, Centrica appears well-positioned to sustain its bullish momentum. Markets are now looking ahead to further updates on the Sizewell C project timeline and the company's ability to navigate the UK's evolving energy landscape while maintaining shareholder distributions.