E.On Sets 2023 Guidance Above Expectations; Raises Its Investments Through 2027

We plan to tweak upward our EUR 9.40 fair value estimate after no-moat E.On released final 2022 results, set 2023 guidance above our estimates and FactSet consensus, and rolled over its five-year business plan on March 15. The latter includes a step-up in network investments for a limited bottom-line accretion due to higher depreciation and interest rates. The company extends to 2027 its guidance of growing the dividend annually by up to 5%. This is the longest-duration dividend growth commitment among European utilities we cover. The dividend on 2022 earnings will amount to EUR 0.51, 5% above the year before and implying a 4.9% yield.