Cautious Outlook on ENI S.p.A.: Hold Rating Amidst Earnings Growth Concerns and Market Volatility

DBS analyst Suvro Sarkar has maintained their neutral stance on 0N9S stock, giving a Hold rating yesterday.

Suvro Sarkar has given his Hold rating due to a combination of factors impacting ENI S.p.A.’s stock. While the company has demonstrated robust performance in its upstream operations and is actively investing in new energy solutions, there are concerns about its earnings growth potential. The company’s earnings growth estimates are lower compared to its peers, which could be a limiting factor in a market with subdued oil and gas prices.
Additionally, the volatility in natural gas and crude oil prices poses a significant risk to ENI’s earnings and cash flow. Although ENI is committed to enhancing shareholder returns and has maintained its guidance despite macroeconomic challenges, the need to replace its Russian gas portfolio by 2025 adds further uncertainty. These factors contribute to the Hold rating, reflecting a cautious outlook amidst these challenges.

According to TipRanks, Sarkar is a 3-star analyst with an average return of 3.0% and a 46.32% success rate. Sarkar covers the Energy sector, focusing on stocks such as Marathon Petroleum, Diamondback, and Chevron.

In another report released yesterday, Stifel Nicolaus also maintained a Hold rating on the stock with a €12.70 price target.