Europe’s giant utility operator, German E.ON, said on Wednesday it was targeting a massive $46 billion in investment in five years for a grid overhaul and expansion to accommodate renewable energy projects as the company’s profit guidance soars.
Shares in E.ON popped to an almost six-week high on Wednesday following the company’s bullish forecast and its plans to raise its five-year investment target by 27% to modernize Europe’s grid.
Shares were trading up 6.53% at 12:46 p.m. ET on Wednesday, and are up 3.41% year-to-date, with investors also eyeing its attractive dividend yield of 4.32%.
E.ON services an estimated 47 million customers, and is now tasked with overhauling the continent’s grid to take in power sources from solar and wind.
“E.ON will be a major beneficiary of the current strong operating environment. In our view today’s medium-term outlook will be a…
