Centrica share price: Group expands Connected Home business in Italy

Centrica (LON:CNA) has inked a five-year partnership with Eni gas e luce, the British Gas owner has said. The agreement will see the company expand its Connected Home business in Italy. 

Centrica’s share price has climbed into positive territory in today’s session, having added 0.55 percent to 165.30p as of 14:34 GMT, slightly outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.16 percent higher at 7,426.92 points. The group’s shares have lost more than 17 percent of their value over the past year, and are down by just under 30 percent in the year-to-date.

Italian expansion

Centrica announced in a statement today that it had agreed a five-year partnership arrangement with Eni gas e luce, bringing its Hive smart home devices into the European market. The British Gas owner’s connected range of thermostats, smart lights and plugs, and door and window sensors will be available to Italian consumers from November 20.

“Strategic partnerships are going to be increasingly important to the growth of Centrica Connected Home,” Nina Bhatia, Managing Director of Centrica Connected Home, commented in the statement, adding that today’s announcement marked “the start of the expansion of Hive into Italy and other new markets during 2018”.

Today’s deal comes after Centrica inked a deal to buy a Belgian power management firm earlier this month, with the business set to form part of its international distributed energy and power unit.

Analysts on Centrica

Deutsche Bank remains bearish on the British Gas owner, having reaffirmed the company as a ‘sell’ last week, with a price target of 160p on the stock, while Credit Suisse continues to see the group as ‘neutral,’ valuing the shares at 225p. According to MarketBeat, Centrica currently has a consensus ‘hold’ rating and an average price target of 205.44p. 

As of 15:08 GMT, Tuesday, 14 November, Centrica PLC share price is 165.30p.