Christopher Kuplent, an analyst from Bank of America Securities, has initiated a new Hold rating on ENI S.p.A. (0N9S).
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Christopher Kuplent has given his Hold rating due to a combination of factors including the current valuation of ENI S.p.A. and its alignment with the price objective. The stock’s price is closely aligned with the EUR 15.5 price objective, which reflects a mid-cycle assumption of $70 per barrel for Brent oil. This suggests that the stock is fairly valued at its current price, limiting the potential for significant upside.
Additionally, while ENI has achieved substantial net disposal proceeds, these are not sufficient to significantly alter the company’s valuation. The company’s self-help measures, such as shutting down loss-making chemical crackers, provide some financial cushion, but not enough to offset potential declines in oil prices. Furthermore, despite ENI’s premium valuation compared to its peers, the requirement for higher oil prices to sustain its cash return promise adds an element of risk. Therefore, the Hold rating reflects a balanced view of the company’s current financial position and market conditions.
Kuplent covers the Energy sector, focusing on stocks such as BP p.l.c., TotalEnergies SE, and Shell. According to TipRanks, Kuplent has an average return of 0.0% and a 62.32% success rate on recommended stocks.
In another report released yesterday, Berenberg Bank also maintained a Hold rating on the stock with a €14.00 price target.