(BFM Stock Exchange) – The American bank considers that the accounts of the company should recover from 2027 and consider that the valuation of the company offers an interesting opportunity to position itself.

Engie signs a clear increase this Wednesday, October 1. The energy group increased by 2.4% at the end of the session, which is the fourth higher increase in CAC 40.

The company led by Catherine Macgregor is supported by Bank of America who noted her opinion on the title to “buy” against “neutral” previously, while enhancing its lens of courses at 21 euros against 18 euros.

This target gives a potential of around 15% to the action during Tuesday evening closing.

Bank of America explains that the results of the company should achieve a hollow in 2026 before rebounding and displaying annual profit per share of approximately 8% per year, on average, during the following three years.

His deposit and activity deposit in battery storage capacities (“Battery Energy Storage System”, BESS) should be at the heart of the growth of these results, according to the bank. Bank of America estimates that this activity will represent 50% of the improvement of its gross operating profit (EBITDA) over the period 2026-2029.

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An attractive valuation

Energy storage is “booming in Europe and, although the United States suffers short-term customs duties, deployments should still double over the next five years, the two regions deploying almost as many storage capacities as land and solar energy by the end of the decade”, notes the establishment.

Bank of America also believes that GIE will take up its objective of Bess capacities, currently set at 9 gigawatts in 2027, the establishment tabling on 12 gigawatts on this horizon.

The bank believes that an additional increase potential could come from the demand of data centers, which are currently developing at high speed with the flight of artificial intelligence.

In view of these prospects, Bank of America judges the valuation of the “attractive” Engie action, especially since the title has lost approximately 10% since mid-July, which is an entry point.

Currently the title is processed with a multiple of 9.5 times the expected profit on the exercise of next year, a discount of 20% compared to its average of five years prior to the energy crisis of 2022 (12.5) and that of groups in its sector (12.5 also).

This discount is intended to absorb, according to the bank, now that “the period of abnormal profits is almost digested and that the profit by action will increase again from 2026”.

By the way, Bank of America believes that the level of valuation of the company fully integrates the risks linked to political uncertainty in France, which are – according to her – exaggerated. The bank also stresses that the yield of its dividend is the most attractive in the sector.