Engie shares ranked among the top gainers on the CAC 40 Tuesday morning on the Paris stock exchange, as the energy group benefited from a favorable note by RBC, which initiated coverage of the stock with a buy recommendation.
As of 10:05 a.m., the stock was up 0.7%, after opening the session with a 1.5% increase. In comparison, the Paris benchmark index was up 0.1% at the same time, while the European STOXX energy sector index rose by 0.4%.
In a note released last night, RBC said that the market is underestimating the appeal of Engie's battery energy storage system (BESS) operations, explaining that the company's recent five-billion-euro investments in the field could lead to positive surprises in results starting from 2027.
According to RBC, upward revisions to analyst consensus forecasts should help fuel a revaluation of the stock, which is currently trading at a 22% discount compared to other integrated sector players. This has led the broker to initiate coverage with an "outperform" rating and a price target of 25 euros.
