Centrica Shares Hit Resistance at 170p, Analyst Upgrades Price Target

Centrica shares (LON:CNA) have bumped into resistance at 170p once again, with the price pulling back 1.61% today at 164.12p. According to analysts at JPMorgan, who slightly increased its price target recently, shares could well break the level as the year progresses.

JPMorgan's revised price target, moving Centrica from 177p to 179p, while keeping a “neutral” rating on the shares indicates an improving outlook, albeit in line with broader market expectations. This minor adjustment reflects a measured perspective on Centrica's current financial standing and future prospects, yet could see an upside break to almost decade long highs should execution fall in line with expectations.

Looking to Wall Street for a broader perspective, Royal Bank of Canada, in late July, demonstrated greater optimism by upgrading its price objective for Centrica to 200p from 175p, assigning an “outperform” rating. Further bolstering positive sentiment, Citi reiterated its “buy” rating on Centrica, setting a price objective of 185p.

Technically, Centrica's share price recently moved above its 200-day moving average, a development often interpreted as a bullish signal by technical analysts. This crossover suggests positive momentum in the stock's recent performance.

Centrica continues to execute its share buyback program, repurchasing over 146 million shares since August 2024. This ongoing initiative underscores the company's commitment to enhancing shareholder value and optimizing its capital structure. The buyback program aims to return capital to shareholders and can also provide support for the stock price.

The markets will likely continue to watch Centrica closely as it navigates the evolving energy landscape. While the share buyback program and positive ratings from some analysts provide support, the company's ability to execute its strategic plans and deliver consistent results will be crucial in determining its long-term performance.