JPM sees 'attractive defensive option' in utilities stocks; ups Engie
J.P. Morgan upgrades French utility Engie ENGIE.PA to "overweight" from "neutral", saying higher gas and power prices create a "halo effect" for the sector
The broker notes a price surge driven by the conflict in the Middle East eliminates previous LNG oversupply risks and leaves 2028 forward prices 28% above pre-war levels
JPM adds the sector is an attractive defensive option as "the disruption and uncertainty created so far look unlikely to fully disappear in the foreseeable future"
JPM favours above-average growth stocks, raising its PT for Germany's RWE RWEG.DE by 14% to EUR 65 and for British energy firm SSE SSE.L by 13% to GBp 2,925
The brokerage cites other lower multiple stocks like Britain's Centrica CNA.L as attractive, and would avoid richly valued peers such as Finland's Fortum FORTUM.HE that are "pricing in generous long-term expectations"
