RBC has initiated coverage of Engie with an "Outperform" rating and a price target of 25 euros, believing that the market is underestimating the appeal of the Franco-Belgian group's battery energy storage (BESS) operations.
In a note released last night, the Canadian brokerage explained that the company's recent five-billion-euro investments in the sector could deliver positive surprises in results starting from 2027.
From RBC's perspective, an upward revision of analysts' consensus forecasts should support a revaluation of the stock, which is currently trading at a 22% discount compared to other integrated players in the sector.
