Verbund Stock Gains After BofA Upgrade on Higher Energy Price Forecasts

Shares of Austrian utility Verbund AG gained in recent trading after Bank of America issued a significant upgrade on the stock, driven by a sharply higher forecast for European energy prices through 2027. The stock rose 1% to trade at €61.35, touching a session high of €63.80, according to a report from Investing.com.

Analyst Cites Supply Shocks

Bank of America analysts pointed to a combination of supply-side pressures that are expected to lift European power prices. The bank's note cited several key factors, including:

• Disruptions to Qatari liquefied natural gas (LNG) exports
• Record-low natural gas storage levels in Europe
• Intensifying demand for LNG from Asia

As a result of these dynamics, the bank raised its Q4 2026 forecast for Dutch Title Transfer Facility (TTF) natural gas prices to €100 per megawatt-hour, up from a previous estimate of €73. It also lifted its 2027 price assumption to €55 per megawatt-hour from €39.

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Impact on Verbund

These revisions translate into an average European power price upgrade of approximately 9% for 2027 and 5% for the current quarter, according to the BofA note. For Verbund, which generates the majority of its electricity from hydropower and sells into wholesale markets, higher power prices are a direct catalyst for increased earnings.

The upgrade comes after a period of significant underperformance for the company's stock relative to Austria’s benchmark ATX index. Verbund's shares had been weighed down by lower-than-average water flows, which reduced hydro generation, and by weaker electricity prices that compressed profit margins. The analyst reassessment provides a potential catalyst for the stock to catch up with the broader European utilities sector, which has outperformed the wider market this year.