Election politics weigh on gentailer valuations, Forsyth Barr warns

Meridian’s hydro portfolio is both a strength and a weakness. (Image: NZME)

Wed, 12 Nov 2025

Political intervention risk has become the dominant headwind for the listed electricity companies, according to a Forsyth Barr sector report that downgrades valuations ahead of the 2026 election.Forsyth Barr cut its target prices for all four gentailers – Meridian, Genesis, Contact and Mercury – by between 2.2% and 4.5%. It also lowered Meridian’s rating to neutral and reduced the target price from $6.60 to $6.30.Forsyth Barr considers Meridian the most exposed to political-intervention risk because of its heavy weig...

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