ENGQF - Engie S.A.

Engie: Strong Share Performance, But Valuation And Leverage Risks Drive Neutral Rating (Rating Downgrade)

Engie is downgraded to neutral after a period of strong returns and increased valuation risk. Engie delivered resilient Q1 results despite lower energy prices, with the Infrastructure segment continuing to provide stable recurring earnings and downside protection. The UK Power Networks acquisition will likely add €12-13 billion in net debt, increasing leverage and interest rate sensitivity.