Suvro Sarkar, an analyst from DBS, maintained the Hold rating on ENI S.p.A. (0N9S – Research Report). The associated price target is €15.20.
Suvro Sarkar has given his Hold rating due to a combination of factors affecting ENI S.p.A.’s performance and outlook. The company’s recent financial results showed a lower-than-expected net profit, influenced by declining Brent prices and refining margins, despite an increase in production. This has led to a cautious outlook on earnings growth, especially in a challenging oil price environment.
ENI’s strategic focus on transitioning to cleaner energy sources and expanding its natural gas portfolio is promising, but it comes with risks. The volatility in natural gas and crude oil prices poses a significant risk to earnings and cash flow. Additionally, the need to replace Russian gas by 2025 requires substantial investment in diversified geographies. While shareholder returns remain attractive, the lack of strong growth catalysts compared to peers has resulted in a Hold rating, with a revised target price reflecting these concerns.
According to TipRanks, Sarkar is a 3-star analyst with an average return of 4.1% and a 54.95% success rate. Sarkar covers the Energy sector, focusing on stocks such as Chevron, Conocophillips, and EOG Resources.
In another report released on March 4, UBS also maintained a Hold rating on the stock with a €14.00 price target.