Germany's Uniper, which is E.ONs power plant and energy trading business could be subject to a potential takeover, due to its small size, according to Goldman Sachs analysis.
Goldman Sachs says there are a number of potential buyers and E.ON has also said it plans to sell its remaining 46.65 percent stake.
"We believe that investors might begin to incorporate an M&A premium in their valuations, and we incorporate a weighting to an M&A-based valuation in our price target," the brokerage wrote in a note, starting coverage of Uniper with a "buy" rating.
Uniper was spun off from E.ON in September in one of the most drastic corporate responses so far to an ongoing crisis in the power sector that has pushed many conventional coal and gas plants into loss in favor of solar and wind energy.
E.ON has signaled its intention to sell more of Uniper, which has a market valuation of 4.8 billion euros ($5.1 billion), but said further stake sales would not happen before 2018 due to tax reasons.
Goldman Sachs singled out Germany's RWE (RWEG.DE), acquisitive Czech energy group EPH and Finland's Fortum (FUM1V.HE), which in November said it was looking for M&A targets in Europe, as "potential consolidators."