Analyst Roberto Ranieri of Stifel Nicolaus reiterated a Hold rating on Enel S.p.A. (0NRE – Research Report), retaining the price target of €6.60.
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Roberto Ranieri has given his Hold rating due to a combination of factors impacting Enel S.p.A.’s financial outlook. The company’s EBITDA is expected to decline slightly in the first quarter of 2025 compared to the previous year, primarily due to asset disposals in Latin America. However, this negative impact is partially offset by improved performance in Iberia and the United States, driven by better renewables performance and capacity additions.
While Enel is making progress in strengthening its balance sheet, the earnings per share for 2025 are anticipated to remain flat year-over-year, with only modest improvements expected from 2026 onwards. The company’s dividend yield remains attractive at around 7%, which is a key factor supporting the stock price. Additionally, potential upside in financials and valuation could arise from the extension of Italian distribution grid concessions, although the terms are yet to be defined by the regulator. These factors collectively contribute to the Hold rating, reflecting a balanced view of risks and opportunities.
In another report released on April 7, Citi also downgraded the stock to a Hold with a €7.40 price target.