Citi keeps Hold on Drax stock with GBP 8.14 target

Published on 10/08/2026 at 16:03 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Net profit was GBP 166.8 million in the quarter ended June 30, 2026. Drax stock costs EUR 9.35 on October 8, 2026, plus 1.08 percent versus EUR 9.25.

Trading-Floor mit großen Bildschirmen und Charts zum Energiesektor und FTSE-Index — Editorial-Foto eines Börsenparketts mit Energiesektor-Charts, verknüpft mit Drax Group plc, ISIN GB00B1VNSX38, Londoner Börse, Illustration mit AI erstellt.

Drax (ISIN GB00B1VNSX38) was covered by Citi with a maintained Hold rating and a GBP 8.14 price target on October 7, 2026, as Markets Insider reported. At 4:00 p.m. CEST on October 8, 2026, the stock was trading at EUR 9.35 at Lang & Schwarz, up 1.08 percent versus the EUR 9.25 prior close.

Three dated developments shape the story

On July 30, 2026, Drax reported quarterly revenue of GBP 2.43 billion and net profit of GBP 166.8 million for the quarter ended June 30, 2026, according to Markets Insider. On September 17, 2026, Drax said its 2026 adjusted EBITDA should reach the top of the GBP 680 million to GBP 711 million consensus range, while capital expenditure remained guided at GBP 210 million to GBP 250 million, according to Drax. The October 7, 2026 Citi note then kept the Hold rating and GBP 8.14 target, giving the market a fresh valuation reference.

What does the target say about valuation?

Citi's target sits below the broader average price target of GBP 9.37 cited in the October 7, 2026 report, while the consensus rating was Moderate Buy. The contrast matters because Drax's operating outlook improved in September, but the latest independent analyst view remained neutral rather than turning positive.

The September update also tied the forecast to the Bluefield Solar Income Fund acquisition, completed for GBP 561 million on July 31, 2026. The transaction added 0.9 gigawatts of operational solar and wind capacity and a 2.9 gigawatt development pipeline, while Drax said net debt to adjusted EBITDA would remain above its long-term target of 2 times during 2026.

When will Drax update investors?

Drax's next dated corporate event is its Capital Markets Day on November 23, 2026, according to the September trading update. The company said the event would provide more detail on its growth plans through the decade, making it the next scheduled milestone after the October analyst note.

Stock holds a measured position

The LSE listing DRX was last at GBp 786.50 on October 8, 2026 at 3:01 p.m. London time, against a 52-week range of GBp 695.50 to GBp 937.50. For investors, the key tension is clear: the 2026 adjusted EBITDA outlook points toward GBP 698 million consensus, while Citi's GBP 8.14 target keeps the valuation discussion cautious. The further course of trading is shown by the continuously updated real-time quote of Drax stock.