E.ON shares drop on regulatory news as Sixt beats expectations

E.ON SE shares fell to their lowest level since January, dropping approximately 6 percent following a disappointing regulatory proposal from the Bundesnetzagentur. The draft for the 2028–2032 gas regulation period suggests a flat-rate capital return of 3.76 percent, significantly lower than the 4.5 to 5.5 percent market expectation. Meanwhile, Barclays raised its price target for E.ON to 20 euros while maintaining an ‘Equal Weight’ rating, citing solid half-year results and lower net debt.

In the rental sector, Sixt SE reported second-quarter results that exceeded market expectations. Revenue rose nearly 10 percent to 1.19 billion euros, driven by strong demand and increased rental prices, particularly in Europe. The company’s stock saw a significant increase following the announcement.

Additionally, Warburg Research maintained a ‘Buy’ rating for Deutsche Pfandbriefbank with a price target of 5.50 euros, noting that while earnings missed expectations, the core capital ratio of the commercial real estate financier was a positive surprise.