(new: closing price, LBBW downgrade)
FRANKFURT (dpa-AFX) – Eon shares, which have been in high demand for weeks, closed sharply higher on Wednesday following the release of its financial results. The path to this gain, however, was marked by a rollercoaster ride: early losses of up to 2.2 percent ultimately turned into a 3.5 percent gain. The share price reached its highest level since 2012, approaching the 20-euro mark, which was last surpassed in 2011.
Since the start of the year, Eon shares have gained more than 20 percent. This allowed the company to catch up with fellow DAX-listed energy group RWE.
Energy sector stocks remained in high demand across Europe midweek. The sector is considered defensive, meaning it is less vulnerable to economic fluctuations than cyclical industries. Additionally, the industry is benefiting from the massive increase in energy demand driven by artificial intelligence (AI). This is evidenced by substantial investments from so-called hyperscalers such as US tech giants Microsoft, Amazon, and Meta in the construction or expansion of data centers.
In 2025, Eon was able to increase its adjusted operating profit. One market participant described the Essen-based company's results as solid overall and exceeding expectations. The focus is on further planned multi-billion euro investments and the regulatory environment. The management of the energy group is confident that government regulations will provide a foundation for value-enhancing investments, wrote Pavan Mahbubani of JPMorgan.
Analyst Erkan Ayççicek of LBBW noted, in addition to the encouraging annual figures, that Eon's debt ratio remains below the group's target despite the investments. However, following the recent share price rally, the expert now believes the upside may be exhausted and has withdrawn his previous buy recommendation. His new price target, at 19.60 euros, is only slightly above Wednesday's closing price./gl/lew/jha/tih/he
