LONDON (ShareCast) - (Sharecast News) - Citi lifted its price target on British Gas owner Centrica on Friday to 93p from 81p as it reiterated its 'buy' rating on the stock.
"In our view, Centrica shares already reflect a punitive power generation windfall tax in the form of a revenue cap and an extension of the tax on oil and gas," the bank said.

"What the shares do not reflect is the upside risk from optionality and growth potential offered by a very profitable rough storage asset, its core cash generative retail business and the prospect for earnings clarity once we have visibility on any government intervention."

Citi also said it reckons that a windfall tax would provide a much-needed clearing event for the shares.

"Furthermore, in a rising rate environment, we prefer companies with little debt and robust balance sheets, qualities which Centrica already possesses."

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