HSBC announced on Wednesday that it had raised its target price for Engie from 16.5 to 17 euros, while maintaining its 'hold' recommendation on the stock.

In a note, the British broker recalls that the energy group recently expressed confidence for the 2024-2026 period due to its strong performance in urban networks and trading.

However, as energy prices normalize, HSBC expects the company's operating profit and net income to decline until 2027.

Although the broker justifies raising its target by the good performance of the heating and cooling networks business, its exposure to electricity tariffs leads it to remain neutral on the stock.

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