Sharecast - "We expect Centrica (LON:CNA) to outline its sustainable level of EBIT at 1H23, which we expect to be range £1.0-1.1bn, implying an earnings per share of circa 12- 13p," the bank said.
"This compares favourably to FY26 consensus EPS currently at 10p. We expect this medium-term guidance to provide earnings and cashflow visibility and, together with clarity on capital allocation strategy (including a further £0.75bn cash return) and investment return hurdle rates, we expect both to underpin current valuation and drive a continued re-rating of the shares."
Citi also said it sees FY23 EPS guidance as very conservative, with little sign of price competition despite marginal uptick in churn and market stabilisation mechanism/ban on acquisition tariffs still in play.
