Cautious Outlook: ENI S.p.A.’s Hold Rating Amidst Conservative Oil Price Forecast and Leverage Concerns

Bank of America Securities analyst Matthew Smith has reiterated their neutral stance on 0N9S stock, giving a Hold rating today.

Matthew Smith has given his Hold rating due to a combination of factors influencing ENI S.p.A.’s financial outlook. Despite the company’s strong performance in the first quarter of 2025, with earnings and cash flows surpassing expectations, ENI has adjusted its cash flow from operations guidance downward by €2 billion, reflecting a more conservative oil price forecast of $65 per barrel for the full year. This adjustment, along with measures to mitigate free cash flow shortfalls, such as reducing capital expenditures and increasing asset disposals, indicates a cautious approach to managing leverage.
While ENI’s efforts to achieve cash neutrality at a lower oil price of around $50 per barrel are supported by asset sales, the company still faces challenges. Its higher leverage compared to peers and lower organic free cash flow generation in the near term contribute to the Hold rating. Additionally, despite potential monetization opportunities from new discoveries and asset sales, the market remains focused on ENI’s ability to balance its financial position amidst these pressures.

In another report released today, Citi also maintained a Hold rating on the stock with a €13.00 price target.