Ascopiave S.p.A., the Utilities sector company, was revisited by a Wall Street analyst on November 7. Analyst Enrico Bartoli from Mediobanca maintained a Buy rating on the stock and has a €3.80 price target.
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Enrico Bartoli has given his Buy rating due to a combination of factors that highlight Ascopiave S.p.A.’s strong financial performance and strategic acquisitions. The company’s EBITDA showed a significant year-over-year increase, largely driven by the consolidation of gas distribution concessions in Lombardy, which positively impacted their financial results despite some offsetting factors such as lower hydro power generation revenues and rising operating costs.
Furthermore, Ascopiave’s strategic acquisition of gas distribution assets from Italgas, along with the exercise of put options on stakes in EstEnergy and HeraComm, has simplified its asset portfolio and enhanced the stock’s visibility. Despite recent positive performance, the stock remains undervalued compared to its peers, trading at a discount to its Regulatory Asset Base (RAB). This undervaluation, coupled with the improved asset portfolio, supports the Buy rating and the slightly increased target price of €3.80 per share.
In another report released on November 7, Kepler Capital also maintained a Buy rating on the stock with a €3.80 price target.