Ascopiave S.p.A.: Strong Financial Performance and Strategic Acquisitions Drive Buy Rating

Ascopiave S.p.A. (0DME – Research Report), the Utilities sector company, was revisited by a Wall Street analyst on May 9. Analyst Enrico Bartoli from Mediobanca maintained a Buy rating on the stock and has a €3.75 price target.

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 initiatives. The company reported substantial growth in revenue, EBITDA, and net profit for the first quarter of 2025, driven primarily by the recovery of tariffs from 2020-2024. This growth was achieved despite some challenges, such as lower revenues from renewable power generation and a reduced allowed return on RAB compared to the previous year.
Furthermore, Ascopiave’s strategic moves, including the acquisition of gas distribution assets from A2A and potential participation in tenders for additional concessions in Northern Italy, are expected to enhance its market position. The company’s financial structure is anticipated to simplify with these acquisitions, improving the stock’s visibility. The current share price is considered undervalued relative to the asset base, particularly in the gas distribution sector, which supports the Buy rating and the target price of €3.75 per share.

In another report released on May 8, Kepler Capital also maintained a Buy rating on the stock with a €3.80 price target.