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Hold Rating for Terna S.p.A. Amid Strategic Updates and Moderate Growth Prospects

Stifel Nicolaus analyst Roberto Ranieri has maintained their neutral stance on 0LBM stock, giving a Hold rating today.

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Roberto Ranieri’s rating is based on Terna S.p.A.’s recent strategic updates and financial outlook. The company has announced an enhanced industrial plan for 2024-2028, which includes a significant increase in capital expenditures aimed at supporting the energy transition. This plan is expected to drive a moderate growth in the Regulatory Asset Base (RAB) and financial metrics, aligning with the company’s long-term development goals.
Despite the positive outlook, the financial targets set by Terna are largely in line with existing expectations, leading to a Hold rating. The improved dividend policy, which includes a 17% increase for 2024 and establishes a new floor, is a positive development for investors. However, the anticipated growth in earnings and revenues does not present a compelling enough case for an upgrade in the stock rating at this time.

In another report released today, Barclays also maintained a Hold rating on the stock with a €8.20 price target.

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