Centrica Shares: Buy or Sell? Analysts Divided

Centrica (LON: CNA) shares have risen 18.2% this year and more than 40% over the past 12 months, but recent analyst calls have been divided on whether the rally has further to run.

In the most upbeat call, Citi upgraded Centrica to Buy, arguing the company is well-positioned as the UK accelerates low-carbon power generation.

The bank lifted its price target to 218 pence, saying higher gas prices and policy support strengthen the group’s long-term earnings profile.

But other firms are urging caution. Kepler Cheuvreux has cut its rating to Reduce, keeping its 165 pence target unchanged.

Its analysts believe the sharp rebound in the shares has gone too far, suggesting the valuation no longer reflects near-term risks and slower expected momentum.

A more neutral stance came from Morgan Stanley, which downgraded Centrica to Equal Weight even as it raised its target to 215 pence.

The bank noted what it called an “attractive evolution” in the company’s business mix, pointing to potential double-digit earnings growth late in the decade.

However, it said the stock’s strong performance since autumn, the completion of its share buyback without extension, and the absence of obvious short-term catalysts justify a more balanced view.

According to data compiled by TradingView, 7 out of 13 analysts currently have a Buy rating on the stock, while 6 have a Hold rating and 1 has a Sell rating. The analyst’s consensus price target is 206.3 pence, suggesting only around 2.7% upside from current levels.